President Ruto defends university funding model

President William Ruto on Tuesday defended the new university funding model despite its suspension by the High Court in October.

Dr Ruto argued that lack of clarity in financing education is responsible for the funding mess plaguing learning institutions.

“We have decided this time around to bite the bullet and sort out the funding in our education sector and provide clarity on the education of our children,” the President said.

This is even after the government froze funding for over 200,000 students under the controversial model, plunging institutions into a deep financial crisis following a court order to halt the disbursement of scholarships and loans.

.

Keep Reading business

•  Standoff at East Africa Portland Cement as employees protest against new management
•  Kenya, Madagascar Partner to Boost Horticulture and Jobs
•  Top 10 most reliable and budget-friendly cars in Kenya Premium
•  End of an era as Mastermind Tobacco to go under the hammer
•  2024: Year of layoffs as businesses struggle to stay afloat

The case will be determined on December 16; meaning universities will remain without funding until then.

The funding model came into operation in September 2023 and currently has over 200,000 students supported.

A report presented to the National Assembly's Education Committee reveals that 234,811 students admitted to universities in 2023 and 2024 are benefiting from the new funding model. The data shows that 113,075 students applied for funding in 2023, while applications rose to 121,736 in 2024.

Last week, Geoffrey Monari, Chief Executive Officer of the University Fund Board, revealed that they were forced to discontinue the disbursement to universities in compliance with the court order.

“We are complying with the court orders, and as long as the order is in place, the implementation of the new funding model cannot go on, that includes disbursement of the funds” he said, reflecting a stalemate that may be difficult to resolve.

The Standard has established that only Sh2.8 billion of the Sh13 billion in scholarships has been disbursed.

This means that the government owes universities Sh10.2 billion in scholarship funding

For loans, the government has disbursed Sh5 billion of the Sh16 billion earmarked for study loans this semester; meaning Sh11 billion is yet to be released.

Under the model, students in Band I get 70 per cent sponsorship by the government and up to 25 per cent in student loans with parents and guardians meeting the 5 per cent gap.

Under Band II, the government extends 60 per cent in scholarships and 30 per cent in loans, with parents required to meet 10 per cent in tuition costs.

Band III students will have 50 per cent scholarship and up to 30 per cent in loans with parents required to raise 20 per cent.

Under Band IV, the government will inject 40 per cent in scholarships with students accessing 30 per cent in loans while in Band V, the government will pump 30 per cent in scholarships with students accessing 30 per cent in loans.

Students in this category will pay 40 per cent of the required fees.