In 2024, Kenya introduced a new university funding model aimed at making higher education more accessible and equitable. The model categorizes students into different financial bands, determining the level of government support they receive in the form of scholarships and loans.
This shift in funding is designed to alleviate the financial burden on families, particularly those from lower-income backgrounds, while still ensuring that the university system remains sustainable. However, the model’s complexity and its impact on various socio-economic groups have sparked both optimism and concern.
The Five Funding Bands
The new funding model divides students into five distinct bands based on their family’s financial situation:
- Band 1: Fully Dependent on Government Support
This category is for students from the most economically disadvantaged families, with a monthly income below KSh 5,995. These students receive 95% of their university costs covered by the government, with 70% provided through scholarships and 25% through loans. This band is designed to ensure that students from the poorest households can access higher education without significant financial strain. - Band 2: Significant Government Support with Some Family Contribution
Families earning between KSh 5,996 and KSh 23,670 fall into this band. Students in this group receive 90% of their education costs covered by the government, split between 55% in scholarships and 35% in loans. The remaining 10% must be covered by the family, reflecting a moderate expectation of family contribution. - Band 3: Moderate Government Support with Increased Family Contribution
This band includes students from families with a monthly income between KSh 23,671 and KSh 43,500. Here, 85% of the costs are covered by the government—40% through scholarships and 45% through loans—leaving 15% to be paid by the family. This category represents a balance between government aid and family responsibility. - Band 4: Reduced Government Support with Substantial Family Contribution
For families earning between KSh 43,501 and KSh 120,000 per month, students receive 75% of their education costs from the government, divided equally between scholarships (30%) and loans (45%). The family is expected to cover the remaining 25%, indicating a significant increase in the family’s financial responsibility. - Band 5: Minimal Government Support with High Family Contribution
The final band is for students from families with an income exceeding KSh 120,000 per month. These students receive only 60% of their costs covered by the government, equally split between scholarships and loans. The remaining 40% is expected to be paid by the family, reflecting the assumption that these families have a greater capacity to fund education privately.
Concerns Over the New Model
Despite the potential benefits of this model, it has not been without controversy. The Means Testing Instrument (MTI) used to categorize students has been a point of contention. Many students and parents argue that the MTI does not fully capture the complexities of their financial situations, leading to misclassification and unfair financial burdens.
For instance, families with fluctuating incomes or those supporting multiple children in higher education may find themselves classified in a higher band than they can realistically afford.
Additionally, there is concern that the model may unintentionally widen the gap between the rich and the poor. Students from middle-income families, who do not qualify for substantial government support but also struggle to afford rising tuition costs, may be particularly affected.
These families often find themselves in a precarious position, too wealthy to qualify for significant aid but not wealthy enough to pay out of pocket comfortably.
Government’s Efforts to Address Issues
In light of these concerns, the government has made some adjustments to the model. Universities were instructed to issue revised admission letters that reflect more accurate fee structures based on the new bands.
The Ministry of Education has also introduced an appeals process, allowing students who believe they have been misclassified to challenge their categorization.
Moreover, the government has emphasized that this model is a work in progress. Education officials have acknowledged the criticisms and expressed a willingness to refine the system to better meet the needs of all students.
They have also pointed out that this model is part of a broader effort to overhaul the entire higher education financing system in Kenya, making it more responsive to the economic realities of the population.
This new funding model comes at a time when the cost of higher education is rising globally, and many countries are grappling with how to finance it sustainably.
In Kenya, the introduction of the new model reflects a recognition that the old system was no longer fit for purpose, particularly as the number of university students continues to grow.
The model aims to ensure that all Kenyans, regardless of their financial background, have access to quality higher education, while also maintaining the financial viability of universities.