Key Features of New University Funding Regime
The government has recently unveiled a new funding model for universities and Technical and Vocational Education and Training (TVET) institutions.
The student-centered and quality-driven approach aims to enhance equality, fairness, and transparency in the allocation of government scholarships and loans to students seeking higher education.
This article explores the key features of the new university funding regime and its implications for students.
Addressing Inequitable Capitation: Under the previous differentiated unit cost (DUC) model, both rich and poor students received the same amount of funding, resulting in uniform and inequitable capitation.
The new funding model seeks to rectify this by apportioning university funding to individual students based on their level of need.
This approach ensures that financial support is distributed more fairly.
Individualized Funding: Universities and TVETs will no longer receive block funding. Instead, the government has resolved to fund students directly according to their level of need.
This change aims to provide equal opportunities for students from all socioeconomic backgrounds to access higher education and technical training.
Funding Categories: The new funding model introduces different categories based on the level of need.
Vulnerable students, including those living with disabilities, will receive 80% scholarships and 20% loans.
The neediest students will receive 70% scholarships and 30% loans.
The third category of needy students will receive 50% scholarships, 30% loans, and their families will contribute 20% of the fees.
The last category, consisting of less needy students, will receive 32% scholarships, 48% loans, and their households will pay the remaining 20% of the fees.
Criteria for Funding Allocation: The allocation of funds will be based on four criteria: choice of the program, household income band, affirmative performance, and government priority areas.
This ensures that students with diverse academic interests and financial situations have a fair chance to receive funding.
Increased Budgetary Allocation: To support the implementation of the new funding framework, the government has increased the budget for university education to Sh84.6 billion.
This represents a significant increase from the previous allocation of Sh54 billion.
The budgetary allocation for TVETs will also rise from Sh5.2 billion to Sh10 billion, enabling better financial support for trainees.
No Increase in Fees: President William Ruto has assured students that the new funding model will not result in higher fees.
The government is committed to adequately supporting all students to meet the cost of their chosen programs.
This announcement brings relief to the 2022 KCSE candidates whose admission was on hold pending the resolution of the funding model.