New University Funding Model Favors the Rich, Disadvantage Thousands of Students

Only those with deep finances will be able to afford a university education under the new financing model, leaving thousands of students unable to afford a university education.

Students who will begin classes at the beginning of next month have until August 27 at midnight to register for government scholarships, loans, and bursaries. Universities have issued invitation letters indicating the actual program costs without government funding.

An analysis of various university programs reveals that some public universities charge higher tuition than some private universities. The information was not previously available to the general public.

While tuition fees have ideally not increased per degree program, the automatic government subsidy has been eliminated, and students who do not qualify for government scholarships and loans will be required to pay the full amount.

In addition, students have to apply for this financial aid every year, with no assurance that they will receive funding.

The Higher Education Loans Board (HELB) and the Universities Fund (UF) will determine a number of factors that will determine the level of funding for each student.

Helb will be in charge of the loans, while UF will be responsible for the scholarships. Students admitted to Karatina University in Nyeri County for Bachelor of Education (Arts) must pay Sh225,420 for the first year.

Additionally, the student will incur costs for housing, food, and other living expenses.
“If these are all school fees, I’d rather send my daughter to Uganda for her higher education. Sylvanus Kulula, a primary school teacher from Nambale, Busia County, stated, “I cannot afford Sh1 million in four years for school fees.”

Mr. Kulula believes that there is insufficient time to prepare for the September 4 arrival of first-year students at the institution, as he believes that there is insufficient time to put everything together.

A student selected for the Bachelor of Science (Medical Engineering) program at the Technical University of Mombasa (TUM) will pay Sh302,940 for each of the five years of study.

Although the government insists that students in need of funding will receive it, there is skepticism regarding the method used to award scholarships and loans. Additionally, the current model increases the loan burden at the time of graduation.

In addition, many Kenyans are still unaware of the operationalization of the financing model. In the current fiscal year, Helb has been allocated Sh30 billion, of which Sh15.9 billion is designated for first-year students.

Students in the vulnerable category will receive 82% of their tuition as a scholarship and 18% as a loan under the new model. Extremely disadvantaged pupils will receive a 70 percent government scholarship and a 30 percent Helb loan.

Those who qualify as having moderate financial need will receive a maximum government scholarship of 53% and a maximum Helb loan of 40%. Students deemed to have less financial need will receive a 38% scholarship and a 55% loan.

However, the percentages will vary between individuals.
If a student pursuing a Bachelor of Science (Medical Engineering) at TUM is placed in the vulnerable category and receives the maximum government sponsorship, they will receive a scholarship of Sh248,410 and a loan of Sh54,529. All funds will be transferred directly to the university.

If the student is granted the loan for five years of study, they will graduate with a debt to Helb totaling Sh272,646.

Additionally, the student must qualify for a standard student loan to cover living expenses while on campus. Helb has provided student financing averaging Sh37,000 per student per year (Sh185,000 over five years). The pupil will begin their job search with a total debt of Sh457,646.

A maximum scholarship of Sh115,117 and a maximum loan of Sh166,617 will be awarded to less-needy students enrolled in the same degree program. In five years, the loan burden for tuition will total Sh833,085, excluding the loan for subsistence.

Kisii University will charge the most for a bachelor of arts in education, at a cost of Sh283,135, according to an analysis of university fees for different programs. The same course will cost Sh244,800 at Kabianga University and Sh112,200 at Maasai Mara.

On Wednesday, only 4,000 students out of 140,107 who were placed to pursue degree courses had applied for financial aid.

Students must register their information on the Higher Education Financing portal at hef.co.ke in order to apply. The application procedure is conducted entirely online, and candidates are not required to print any documents.

The portal is linked to other government agencies, such as the Kenya Revenue Authority, the National Hospital Insurance Fund, the National Transport and Safety Authority, the Kenya National Bureau of Statistics, and the Safaricom and Airtel mobile phone networks, from which crucial data will be extracted to determine a candidate’s level of need.

The organizations have already signed data sharing agreements with Helb and UF, as well as a data protection impact assessment report that was conducted in collaboration with the Office of the Data Protection Commissioner.

The type of primary and secondary school attended (public, private, day, residential, rural, or urban) will also be used as a factor, with each scoring differently.

Consideration will also be given to scholarship-eligible students.
The Presidential Working Group on Education Reforms recommended the New University Funding Model to replace the previous one, which subsidized tuition fees for all students. The government was supposed to pay 80% of the unit cost of the programs, while the university and households each contributed 20%.

However, the government’s commitment has diminished.
In the previous fiscal year, the government covered approximately 48% of the cost of student programs. Due to the government’s failure to meet its obligations, universities have accumulated arrears totaling Sh61 billion owed to statutory bodies, suppliers, and lecturers.

Continuing students are unaffected by the new model and will continue to pay Sh16,000 per year in tuition expenses in addition to other mandatory fees.

New University Funding Model Favors the Rich, Disadvantage Thousands of Students