How new varsity funding model will affect learners
Due to defaulted bank loans, unpaid contractors, and unremitted statutory deductions, public universities now owe Sh60.2 billion in unpaid debts.
This has made the financial crisis, which is harming the operations of public universities, worse together with declining State capitation and declining student enrollment.
In order to address this, the government has created a funding model for higher education that will give support to homes in need rather than wealthy families.
What is the purpose of changing the university finance paradigm, and why?
These standards are used to determine how much money should be provided to universities and colleges that are supported financially by the government.
The primary objective of the State’s decision to alter the funding structure is to address the uniform and extremely unfair capitation that is present in the differentiated unit cost (DUC) model, where both wealthy and low-income students are given the same amount.
The new funding model aims to give students from low-income households an equitable chance to pursue higher education and technical and vocational education and training (TVET).
This new framework replaces the previous one.
The DUC model, which bases funding for universities on the quantity and nature of undergraduate students enrolled in the regular program, is now used to finance higher education institutions.
According to the DUC model, the government, through the University Fund, was anticipated to cover 80% of the unit cost, with students and the institutions picking up the remaining 20%.
However, despite the government funding ratio steadily declining over time to 48.11 percent in public colleges and 22 percent in private universities, this has not been the case.
The DUC’s implementation began in the 2016–17 fiscal year, despite concerns from detractors that it would favor large, established colleges.
How new varsity funding model will affect learners
Prior to the DUC, a set fee of Sh120,000 per student, per year, was allotted to each academic program.
What criteria will the new financial framework use to determine funding?
Four factors will determine funding, that is;
- the program chosen, the household income range,
- the affirmative performance standard,
- the government priority regions.
The degrees of student need will be determined objectively using a Means Testing Instrument (MTI).
Eight variables make up the instrument, which has been reinforced over time and connected to other databases to increase reliability.
Parents’ backgrounds, gender, course type, marginalization, handicap, family size, and composition are among the eight factors.
It is envisioned that the State will be able to ascertain the requirements of the various households and fund them accordingly by fusing these elements.
According to MIT, less talented students will receive more scholarships than loans, but students from wealthy homes will receive the opposite.
What are the two models’ main distinctions from one another?
According to the new approach, funds will be allocated based on students’ levels of need, which are divided into four categories: vulnerable, severely needy, needy, and less needy.
Scholarships, loans, and household payments will all be combined into progressive funding for students that will be calculated scientifically.
Contrary to previous practice, universities and TVETs would no longer receive block funding in the form of capitation based on the DUC, whose sustainability has been problematic as a result of a decline in government funding ratios.
How much will the state finance students?
The vulnerable and highly needy students, who make up 29% of those enrolling in universities and TVETs this year, will receive full assistance from the government under the new funding model.
Scholarships, loans, and bursaries would be used to pay for these students’ education.
Needy students who enroll in colleges will receive government loans of up to 40% and scholarships of up to 53%, with their households only covering 7% of the cost of their university education.
How new varsity funding model will affect learners
TVET participants will get up to a maximum of 50% in government scholarships, 30% in loans, and 20% of the cost will be covered by their families.
When will the new system become operational?
According to President William Ruto, the new framework will be applicable to the incoming class of students to colleges and does not result in a rise in tuition costs.
It will be put into effect beginning with the new cohort of 173,127 students who are enrolling in universities and 145,325 who are enrolling in TVETs in academic year 2023–2024.
All ongoing government-sponsored students will get financial aid in accordance with the prior financing scheme (DUC).
What will make it easier for parents and students to make wise decisions?
Prior to each placement cycle, universities will be expected to disclose and make public the exact cost of their programs on their websites and through the Kenya Universities and Colleges Central Placement Service (KUCCPS).
It is against the law for public universities to impose new fees or increase existing ones without the University Funding’s (UF) consent.
How will allocation impact the new model?
The State increased financing for university education to Sh84.6 billion from Sh54 billion allotted in the financial year commencing in July as loans and grants in order to support the implementation of the new framework.
As a result, each student would receive an increase in funding from Sh152,000 to Sh208,000.
The budgeted allocation for Tvets would rise from Sh5.2 billion to Sh10 billion in the upcoming fiscal year, or Sh67,000 per trainee annually.
What occurs to GSS students who choose to enroll in private universities?
State-sponsored students who choose to enroll in private institutions will be required to pay their entire tuition, according to Ezekiel Machogu, cabinet secretary for education, in a policy change intended to address the financing issue in public universities.
How new varsity funding model will affect learners
