President William Ruto launched the Higher Education Funding Model for public universities and Technical and Vocational Education and Training (TVET) on May 3, 2023.
The government established the Universities Fund (UF) and the Universities Fund Grants Management Department (GMD) to apportion funds to universities in Kenya.
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Under this new model, universities and TVET institutions will no longer receive block funding in the form of capitation, as was the case with the Differential Unit Cost Model.
Instead, funding for students will be provided through scholarships, loans, and household contributions based on a graduated scale determined by the Means Testing Instrument (MTI).
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Scholarships: Scholarships refer to grants provided by the Universities Fund that do not require repayment. These are awarded based on need, with the amount varying depending on the student’s financial circumstances.
Loans: Loans are repayable upon graduation and accrue interest at a rate of 4% per annum. The Higher Education Loans Board (HELB) administers these loans, which cover tuition fees and living expenses.
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Household Contributions: Household contributions refer to the portion of university fees that parents or guardians are expected to cover, determined by their financial capacity.
Student Categorization in New Funding Model
The government uses MTI to scientifically determine the need levels of students and funds them based on four criteria: choice of the program, household income band, affirmative action performance, and government priority areas.
The instrument includes eight variables, which have been strengthened over the years by linking them to other databases to enhance reliability.
These variables cover parents’ background, gender, course type, marginalization, disability, and family size and composition.
By combining these variables, the State aims to assess the needs of different households and allocate funding accordingly.
Using MTI, students from wealthier families will receive less money in scholarships and loans, while their household contributions will be higher compared to those from poorer backgrounds.
The new model categorizes students into five bands, specifying the scholarship and loan amounts they will receive, and the contribution required from their parents.
Govt Opens Window for Appeals
On August 20, MPs questioned Higher Education and Research PS Dr Beatrice Muganda about the accuracy of MTI in assessing students’ financial ability and determining their placement in the appropriate band.
This came after many students were wrongly placed, with a large number categorized in Bands 4 and 5. The MPs questioned the rationale behind placing students deemed to be needy in the highest bands.
The PS emphasized the government’s commitment to ensuring equity and assured MPs that measures were in place to address the concerns raised.
In response to the complaints, Universities Fund CEO Geoffrey Monari said that the widespread categorization of students from needy families into the wrong bands was due to data entry mistakes made by the applicants themselves.
“This challenge is mainly because we have noted that students are not providing the correct information to help us band them properly,” he said.
Monari promised that the grievances would be addressed within 14 days and advised students placed in the wrong bands to appeal for placement into funding bands that match their needs.
“All is not lost because we will give these students a second chance to appeal, provide proper information, and have the opportunity to be banded in the correct category,” he said.
To appeal for more government scholarship funding, students should visit www.hef.co.ke or contact the Ministry’s dedicated teams at universities during admission.
Considerations During Appeal
1. Information: During the appeal process, you will only be allowed to provide new information that was not included in the first application.
2 . Reason for Appeal: Students will be required to state one reason for filing the appeal. This will help the UF determine whether they qualify for a higher funding band.
The reasons can vary from being a total orphan, being raised by a single parent, or finding the expected household contribution too high.
3. Proof: You will then be required to provide proof for the reason selected above, such as a death certificate if both parents are deceased.
Students who were sponsored in high school can provide a letter to confirm this, while those whose parents are employed can submit a pay slip to determine whether their monthly salary qualifies them for a better funding band.
4. Submission: Ensure you submit the information to complete the process.
The appeals will be processed within three weeks from the date of application, and the deadline for applications has been extended to December 31, 2024.
