Understanding the New University Funding Model .

The Kenyan government, under the Kenya Kwanza administration, has introduced a new university funding model aimed at making higher education more accessible. This initiative, however, has ignited widespread reactions among Kenyans, with some praising the move while others express concerns. Despite the mixed reactions, the government maintains that this is a step in the right direction for the future of education in Kenya.

On Friday, August 16, 2024, the Higher Education Principal Secretary, Beatrice Inyangala, provided an in-depth explanation of the new funding structure. The model is designed to cater to students' financial needs based on their families' income levels and is divided into five distinct bands:

In Band one Families with an income of up to Sh5,995 fall into this category. The government will cover 70% of the student's fees through a scholarship, and an additional 25% will be provided as a loan. This means that 95% of the student's fees are taken care of, leaving the family to contribute just 5%. Students in this band will also receive an upkeep loan of Sh60,000 from the Higher Education Loans Board (HELB).

Band two ,Families earning between Sh5,995 and Sh23,670 are placed here. The government will cover 60% of the fees through a scholarship and 30% as a loan, leaving the family responsible for 10%. Students in this band will also receive a Sh55,000 upkeep loan.

Band three ,Families with an income ranging from Sh23,670 to Sh70,000 fall here. In this band, 50% of the fees are covered by a scholarship, while 30% are provided as a loan. The family will need to contribute 20% of the total fees. Students in this category will receive an upkeep loan of Sh50,000.

This band includes families with an income between Sh70,000 and Sh120,000. In this group, the government scholarship covers 40% of the fees, and the loan covers 30%. Families will need to pay the remaining 30% of the fees.

Band five are families earning above Sh120,000. These families are required to pay 40% of the fees, with the government providing 30% as a loan and covering 30% through a scholarship.

The introduction of this new funding model has not been without controversy. Critics argue that the classification of families might not be accurate, leading to possible misallocation of resources. In response, the Cabinet Secretary for Education, Julius Ogamba, has assured the public that there is a mechanism in place for students and families who feel they have been misclassified. They can appeal their placement through the Higher Education Portal, ensuring that the process remains fair and transparent.The new university funding model represents a significant shift in how higher education is financed in Kenya. By tailoring financial support to the income levels of families, the government aims to reduce the financial burden on the most vulnerable while ensuring that education remains accessible to all.