President William Ruto announced plans for the State to increase financing for universities and Technical and Vocational Education Training Institutions (TVETs) by Ksh.30.6 billion to Ksh.84.6 billion in the fiscal year 2023/24 as part of a new higher education funding model.
This equates to a 50% increase in total financing and a 37% increase in funding per university student to Ksh.208,000 (up from Ksh.152,000).
TVET budget allocations will also be increased from Ksh.5.2 billion to Ksh.10 billion.
President Ruto told the press at the State House in Nairobi on Thursday that the construction of the new funding model's blueprint was inspired by the reality that institutions of higher learning confront budgetary issues due to massive student enrollment.
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President Ruto stated that the institutions would not get block funding in the form of grants based on differentiated unit costs under the new funding model, which will begin with a new cohort of 173,126 students entering universities and 145,325 students entering TVETs.
He stated that the government has decided that university funding will be student-centred and allocated to individual students based on their level of need. Students will be funded by a combination of scholarships, loans, and household payments on a tiered scale, as assessed scientifically by a means testing device.
Ezekiel Machogu, Cabinet Secretary for Education, will take immediate steps to implement the funding model. Students will be classified into three categories of need: vulnerable, less vulnerable, and able, and will subsequently get support through government scholarships and loans.
"The government will fully fund vulnerable students, who make up 29% of students entering universities; this equates to 45,000 students who will be fully funded by the government." "The State will fully fund 42,000 students in our TVET institutions," he stated.
According to President Ruto, students from less poor households will receive government scholarships of up to 53% and loans of up to 40%, while able students will be financed up to 38% of the program's cost and 55% in the form of loans.
Those who enrol in TVETs would receive 32% government scholarships and 48% government loans, according to the Head of State.
Universities will be compelled to report and publicize the actual cost of their programs once the funding model is introduced.
President Ruto also stated that university placement would no longer be determined by money beginning with the 2023/24 academic year.
