University funding update 2023.Parents of university and college students will now be required to pay fees,
as the government has adjusted the funding formula introduced months ago.
The initial plan, which aimed to alleviate the financial burden on parents who couldn’t afford higher education costs, has been modified.
All households will now share a portion of the fees.
The new funding formula, previously based on four categories of students (vulnerable, extremely needy, needy, and less needy),
has been expanded to five and renamed as ‘bands.’
In this revised system, students in these bands will receive between Sh40,000 and Sh60,000, depending on their household’s financial strength.
University funding update 2023
However, there has been a significant shift from the initial plan, where ‘vulnerable and extremely needy’
students were exempted from any household costs, and the government was to cover all expenses.
The ‘needy and less needy’ were supposed to contribute seven percent towards university education, alongside scholarships and loans.
This means that the ‘vulnerable’ students were to receive 82 percent in scholarships and 18 percent in loans with no contribution from households.
The ‘extremely needy’ were to receive 70 percent in scholarships and 30 percent in loans without out-of-pocket expenses.
University funding update 2023
The ‘needy’ were to receive government scholarships of up to 53 percent and loans of up to 40 percent,
with their households covering seven percent of the costs.
‘Less needy’ students would receive government scholarships of up to 38 percent, loans of up to 55 percent, and households would pay seven percent.
Under the revised system, students in band one (previously ‘vulnerable’) will get 70 percent scholarships and 25 percent for loans.
Parents in these households will now pay five percent of the fees cost. Additionally, students will receive Sh60,000 for their upkeep.
In band two (previously ‘extremely needy’), students will receive 60 percent scholarships and 30 percent loans.
Parents will contribute 10 percent of the costs, and the government will allocate Sh55,000 to each student for their upkeep.
University funding update 2023
Band three (previously ‘needy’) students will receive 50 percent scholarships and 30 percent loans, with parents covering 20 percent of the costs. Students in this group will receive Sh50,000 for upkeep.
The newly introduced band five will receive scholarships of 30 percent and another 30 percent for loans,
with households paying 40 percent of the costs. Students in this group will receive Sh40,000 for upkeep.
University funding update 2023
The adjustments were made amid concerns about the sustainability of the initial funding formula.
The government official suggested that the original plan might be too costly in the long run.
The Ministry of Education has been working to resolve this funding stalemate.
Despite this, there has been concern over the financial crisis faced by public universities and colleges due to delayed funding by the government.
The State is yet to disburse funds allocated to universities, leading to financial challenges in these institutions.
Vice-Chancellors have been managing the crisis, using funds meant for continuing students to support the budgets for new students.
Helb and the Universities Fund (UF) have categorized students for scholarships and loans,
with verification and categorization already completed for around 220,000 students.
However, the release of funds is pending approval from their respective boards.
It’s unclear when universities and colleges will finally receive the funding.
The delay in funding has led to financial difficulties in these institutions.
In conclusion, the government’s adjustment of the funding formula for higher education has led to parents being required to contribute to their children’s education,
impacting various categories of students and raising concerns about the sustainability of the plan.
Public universities and colleges are also facing financial challenges due to delayed funding.