As Kenya’s KCSE graduates prepare for their next academic journey, the government has introduced a new funding model for higher education.
This new framework replaces the previous Differentiated Unit Cost (DUC) system used to finance universities. Unveiled on May 3, 2023, the model is expected to align with President William Ruto’s vision to ensure equitable and adequate financial support for all eligible students pursuing higher education.
The primary objectives of this new funding model are:
1. To provide comprehensive financial support to all qualified students
2. To promote access to high-quality higher education
3. To ensure equitable distribution of funds based on individual financial needs
4. To address the financial challenges faced by public universities and TVET institutions
A key feature of this model is the separation of student placement from funding allocation. Unlike the previous system where institutions received block funding (capitation), the new model channels funds directly to students through a combination of scholarships, loans, and household contributions.
How Much Students Will Pay in New University Funding Model
The new framework introduces a tiered system with five distinct bands, each tailored to different income levels and financial needs:
Understanding the New University Funding Model infographic
Band One: Support for the Most Financially Challenged
This category targets families with a monthly income not exceeding Sh5,995, considered the most economically vulnerable group.
– Government scholarship: 70% of fees
– Loan coverage: 25% of fees
– Total support: 95% of fees
– Family contribution: 5% of fees
– Additional benefit: Helb upkeep loan of Sh60,000
Band Two: Assistance for Lower-Middle Income Families
This band is designed for families with a monthly income between Sh5,995 and Sh23,670.
– Government scholarship: 60% of fees
– Loan coverage: 30% of fees
– Total support: 90% of fees
– Family contribution: 10% of fees
– Additional benefit: Helb upkeep loan of Sh55,000
Band Three: Support for Middle Income Households
Targeting families with a monthly income ranging from Sh23,670 to Sh70,000.
– Government scholarship: 50% of fees
– Loan coverage: 30% of fees
– Total support: 80% of fees
– Family contribution: 20% of fees
– Additional benefit: Helb upkeep loan of Sh50,000
Band Four: Assistance for Upper-Middle Income Families
This category caters to families with a monthly income between Sh70,000 and Sh120,000.
– Government scholarship: 40% of fees
– Loan coverage: 30% of fees
– Total support: 70% of fees
– Family contribution: 30% of fees
Band Five: Support for Higher Income Households
This band is for families earning more than Sh120,000 per month.
– Government scholarship: Not specified
– Loan coverage: 30% of fees
– Family contribution: 40% of fees
– Total support: 70% of fees
President Ruto Defends the New University Funding Model
President Ruto has staunchly defended this new funding model, highlighting its potential to alleviate the financial burden on families. In a public address in Nandi, he stated,
“This model ensures that students from vulnerable backgrounds receive between 80 and 95 per cent of tuition loans and scholarships to pursue education like other Kenyans.”
