New funding model threatens survival of private universities

Job losses loom in private universities while some institutions may close under the new funding formula, it has emerged.

This follows the adoption of the new funding model that supports students through scholarships and loans and will come to force in September this year.

Under the arrangement, however, private universities will not be eligible for the scholarships as they will exclusively be reserved for students joining their public institutions.

This means that students joining private universities will only benefit from loans to settle their tuition fees.

Prof Stephen Mbugua, the Kenya Association of Private Universities (KAPU) chairman on Tuesday noted that some private institutions might be forced to close shop following the decision by the government to exclude private universities from government funding in the form of scholarships.

"The numbers (of students) are so low that they are not sustainable to make our universities move to the next five years," said Prof Mbugua, vice chancellor of the Catholic University of Eastern Africa (CUEA).

He spoke on the sidelines of the eighth edition of the Catholic Schools Principals' Association Conference at the Catholic University of Eastern Africa.

Prof Mbugua called on the government to reconsider reviewing the funding model to save the private institutions from imminent collapse.

"We have already appealed to the government. I have already sent on behalf of the private universities a letter to the Cabinet Secretary, the Higher Education PS, and even to the chair of the education committee in parliament to reconsider this decision," he argued.

The new model, the stakeholders from private universities say, seems to have solely focused on public universities, locking out many others pursuing courses in private universities.

"How students will be classified according to the level of need is little understood. There are many other students who were placed in private universities and are needy and we feel that the model is discriminatory to many of them," said Management University of Africa Vice Chancellor Prof Washington Okeyo said.

Based on the new model, the students will be classified into four categories of need. It will include the vulnerable, extremely needy, needy, and less needy.

The new model also incorporates a diverse blend of grants, loans, and household contributions, as per the level of need of individual students in public universities.

While the new model estimates that approximately 29 per cent of the total student population in Kenya falls under the 'vulnerable and extremely needy' category, 17 per cent are classified as 'needy', while the remaining 54 per cent are categorised as 'less needy'.

The model seeks to fully fund the neediest student category who will receive 100 per cent government scholarship while those from needy and less needy households will get 93 per cent government funding. In this category, the students will bear 7 per cent of the tuition costs.

Those categorised as needy will receive government scholarships of up to 53 per cent and loans of up to 40 per cent with their households paying seven per cent of the cost.

But with many students currently opting to pursue their courses in private universities, the stakeholders say the new model discriminates them from their peers in public universities.

Private universities say that despite being highly committed to providing quality education in the country, there was a need for government to consider students from needy backgrounds that require government support.

"Private universities play a key role in the education sector. The fact that more and more students have chosen and have been placed by KUCCPS to study in private universities is an indicator that they are hallmarks of quality education. The government should step in and also support these students in private universities," said Kabarak University Vice Chancellor Prof Henry Kiplagat.

Since 2016, the government has sent over 100,000 government-sponsored students to private universities.

A document by the Kenya Association of Private Universities submitted before the National Assembly Committee on education in 2021 revealed that private universities hosted 15 per cent of the total population of government-sponsored students.

In 2016, the institutions admitted 10,984 students, (17,363) in 2017, (12,656) in 2018, (17,511) in 2019, and (27,756) in 2020.

In 2021, the universities received 28,063 students.

In this year's placement, some 140,107 students who sat the 2022 KCSE exam were placed in public and private universities to study for undergraduate degrees.

Out of this, 130,485 Students placed in public universities will get scholarships and loans while 9,662 students will join private universities but will only get student loans to support their education.

Prof Mbugua said should the new model continue in the same fashion, private universities will sink into financial constraints.

He further argues that there's a deliberate effort to promote admission to public universities because students were promised scholarships.

"This model has come out of an onslaught of private universities. A number of universities got less than 10 students," Mbugua said.

He argued that the model is in contrast to the Kenya Kwanza economic model to promote increased jobs both in the private and public sectors.