Demystifying myths around new higher education funding model

Since the unveiling of the new higher education funding model in May this year, there has been a raging debate among stakeholders on its implications.

From the discussions, it is evident that there is lack of sufficient information on the model and uncertainty about its suitability in promoting equity and access to higher education.

The most vocal groups have been parents, students and the media who have raised concerns about the affordability of higher education, especially university education, under the new model.

The conflicting information by those claiming to give expert opinions has created confusion. No one seems to be sure whether the new funding model is good for the students, parents, institutions or the nation for that matter.

On the one hand, critics of the new funding model opine that it will make university education a preserve of the rich and deny students from poor backgrounds an opportunity to pursue higher education.

The government has been categorical that the new model is good for the nation, families, students, and universities. According to the Education Ministry, the new model will rescue public universities from insolvency and breathe new life into the institutions that have been on their deathbed as a result of prolonged financial challenges. Unlike the previous funding model, the new model is centred on the learner.

According to the PS, State Department for Higher Education and Research Beatrice Inyangala, the government will provide students with grants and loans based on their financial needs. Using a Means Testing Instrument (MTI), applicants will be placed in four categories; vulnerable, extremely needy, needy, and less needy.

The ministry has, on several occasions, been quoted saying that university fees, under the new funding model, have not been increased. The ministry has also gone ahead to explain that for the first time, vulnerable and extremely needy students will go to university and acquire an education without paying a cent. Universities Fund CEO Geoffrey Monari says the new model will grant universities autonomy for effective planning and operation. It will ensure the adequacy and predictability of resources.

Despite the many attempts to put to rest doubts on its likely impact, doubts have continued to plague the new model, with the voices of those critical of it growing louder by the day. This article, therefore, attempts to bring out the truth about the new model, debunking the myths and emphasising its transformative potential.

On May 3, 2023, President William Samoei Ruto, unveiled the new higher education financing model that seeks to foster equity and access to higher education. The president noted that the new model will now ensure students facing financial hardships will not be required to pay any fees to colleges and universities including funds for their upkeep.

The model has classified students seeking funding into four categories, the vulnerable, extremely needy, needy and less needy.

Each student will be funded individually based on their level of need. The level of funding will be determined using MTI, a scientific approach that evaluates an applicant's family economic background to ensure that students from poor households are given priority in terms of scholarship allocation while those from less needy households will get financing from HELB in the form of loans. This funding will be accessible, through individual application, to all students admitted to public universities through the Kenya Universities and Colleges Central Placement Service.

The new model seeks to reduce the financial burden on households while promoting equity, quality and access to higher education. It is important to note that universities shall not levy additional charges or raise fees without the approval of the Universities Fund Board.

The introduction of the new model has come at the right time and will greatly help in solving the financial crises that public universities have been facing over the last few years. The benefits of this model cannot be overemphasised.

Its positive ramifications radiate across various stakeholders. For students, affordability becomes a reality, debunking the myth that education is solely for the privileged. The benefits can be summarised as follows:

Equity in funding: Students financing whether on scholarships, loans or bursaries will be based on the assessed level of need. Increased cash flow to universities. All students who qualify for university intake (C+ and above) will be placed and will be eligible for funding. Inclusivity - every student will be eligible for financial assistance. Enhanced quality of education offered by our universities.

The model will allow students to focus on their academic work since they will be assured of full financing which means they will no longer need to do side hustles in the evenings and weekends to raise funds for their fees and upkeep.

The nation stands to gain immensely from this model, with a reduced household contribution, the vulnerable and extremely needy segments of the population are guaranteed full government scholarships and reduced loans as well as money for upkeep. The needy and less needy households are only required to contribute a nominal 7 per cent of the fees which will be even less than what the current continuing students are paying.

Universities will benefit from regular and reliable income streams, enabling them to offer quality education away from the financial challenges that plagued previous models. Adequacy and predictability of resources lead to a stable academic environment. It will allow universities to refocus their mandate of delivering quality education, training and research as opposed to previous models where universities were busy looking for revenue-generating streams to provide more income to finance operations.

Amidst the apprehension among stakeholders on the reliability of the new model, the government has already set aside budgetary allocations to support this transformative initiative. Every student who applies for the scholarships will be considered and no student will be locked out of the funding or be disadvantaged.