The government has broken down the new Higher Education Funding (HEF) model for student loans following a directive by the Ministry of Education to all universities.
Education Cabinet Secretary (CS) Julius Ogamba on Friday, August 16, directed all universities to release updated fee structures for the first years by Monday, August 19.
CS Ogamba stated that the notice came following President William Ruto’s directive regarding the withdrawal of the admission letters that had been sent earlier.
Following the directive to universities, Higher Education and Research Principal Secretary Dr. Beatrice Inyangala went ahead to explain how the government will roll out the new HEF Model unveiled more than a year ago on May 3, 2023.
PS Inyangala in a statement on Friday said that the government will allocate loans to each student based on categories set out to for different student categories.
The PS added that the loans will be based bands which are categorized according to the monthly income of the respective student’s families.
Higher Education PS Explains Bands for HEF Model
According to Inyangala, a total of five bands have been used to categorize the students, with those from families that have a monthly income of up to Ksh5, 995 placed in Band one.
Also Read: Ruto Gives Fresh Directive on University Funding
Those from families with a monthly income up to Ksh23,670, on the other hand, have been placed in band two while those from families with a monthly income up to Ksh70,000 are placed in Band three.
“THE NEW UNIVERSITY FUNDING MODEL BANDS EXPLAINED: Band 1: For families with a monthly income up to Sh5,995 Band 2: For families with a monthly income up to Sh23,670 Band 3: For families with a monthly income up to Sh70,000,” explained Inyangala.
Additionally, band four contains students from families with a monthly income up to Ksh120,000, with the final Band 5 selected for families with a monthly income above Ksh120,000.
PS Inyangala at the same time revealed how the government scholarships for each band shall be allocated and how much each family household will contribute based on the categorization.
Allocations for each band
For students placed in band one, the government scholarship will cover 70%, while the loan will cover 25%, making it a total support 95%. The family will contribute 5%, and the upkeep loan will be Ksh60,000.
The government scholarship, on the other hand, will cover 60% for band two students, with learners in this band set to receive loans cover for 30% of the fees making the total support from government as 90%.
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The students will receive upkeep loans of Ksh55,000 with their families set to contribute 10% of the fees.
For students placed in band three, the government scholarship will cover 50%, while the loan will cover 30%, making it a total support 80%. The family will contribute 20%, and the upkeep loan will be Sh50,000.
The government scholarship will cover 40% for band four students, with learners in this band set to receive loans cover for 30% making the total government support 70%.
The breakdown comes after President Ruto announced the doubling of funds allocated to the newly launched HEF model while highlighting that the government seeks to ensure Kenyans from all backgrounds get access to education.
Ruto on New University Funding Model
“Another thing we have said is that all students who come from vulnerable backgrounds we are giving them scholarships covering for 80% or 90% so that they can be able to continue with their studies,” said Ruto.
The New Higher Education Funding Model was unveiled by the President in May 2023.
According to the government, the model was aimed at addressing challenges encountered by public universities and Technical and Vocational Education (TVET) institutions due to massive enrollment and inadequate funding.
HEF framework replaced the Differentiated Unit Cost (DUC) previously used to finance universities and prioritizes a student’s financial need which separates placement from funding.
Further, the government said that funding for students would be provided through scholarships, loans, and household contributions.
The Higher Education Government Student Scholarship, which is under the model, is a financial assistance program provided to learners in these public institutions.
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