So, what is the formula and how does it work? The funding model seeks to make government tuition support to students more direct and flexible.
It broadens funding options for students to involve scholarships, grants or loans, depending on the ability of their families.
Students from poor families get more scholarships and grants, rather than more loans that accrue interest and burden many after their studies considering lack of employment opportunities.
Those from capable families get more loans and less scholarships and grants.
This model was unveiled by President William Ruto on May 3 last year on the recommendation of the Presidential Working Party on Education Sector Reforms.
It's a departure from the Higher Education Loans Board approach that was largely loan-oriented.
“Variable scholarships and loans funding, dubbed the New Funding Model was unveiled [...] to address the challenges that public universities and TVET colleges were facing, primarily attributed to massive enrolment and inadequate funding,” a document on the formula reads.
“This funding model is student-centred; scholarships and loans are apportioned to students based on their assessed levels of need.”
Under this plan, universities and TVETs capitation will now be based on the Variable Scholarships and Loans Funding model as opposed to the previous Differentiated Unit Cost model.
“The funding to students shall combine scholarships, loans and household contributions on a graduated scale as determined by Means Testing Instrument from time to time."
The MTI is a scientific method used to determine a student’s level of financial need by using certain indicators.
The government uses local administrators like chiefs to investigate the ability of a family to raise university fees.
Basing on the findings of MTI, students are placed into five bands.
Band 1 are the extremely needy and vulnerable. They receive the bulk of the government aid, with scholarships at 70 per cent, loans at 25 per cent while their families cover the remaining five per cent.
Such students are eligible for up to Sh60,000 in upkeep support.
Band 2 are those from low-income families, who require substantial aid. Thy get 60 per cent scholarship, and 30 per cent loans and their families raise the remainder 10 per cent.
They can also get Sh55,000 in upkeep.
Band 3 are students whose families have modest incomes. They get 50 per cent in scholarships, 30 per cent in loans and their families cover 10 per cent in fees.
They can get Sh50,000 in upkeep.
Bands 4 and 5 are considered students from middle and high-income families.
They pay more in fees per household at 40 and 20 per cent respectively, while the students get 30 per cent loans and between Sh40,000 and Sh45,000 as upkeep.
The government says this new model promotes equity and access to higher education as applicants are funded depending on their level of need.
“[Under this model] the government can account for every Kenyan student supported through loans, scholarships and bursaries in higher education sector; and students are funded based on the actual cost of the programmes,” the state says.
Students placed in public universities by Kenya Universities and Colleges Central Placement Service and TVET trainees are eligible for government scholarships and loans.
Those studying in private universities and as parallel or Module II or self-sponsored students in public universities are eligible for loans only.
