New Funding Model for Universities and TVETs Student Centered, Says Basic Education PS
The State Department for Basic Education in Kenya has implemented a new funding model for universities and Technical and Vocational Education and Training (TVET) institutions.
According to Principal Secretary Belio Kipsang, the new model is designed to be student-centered, predictable, and encourage institutions to explore additional revenue streams.
The funding model aims to address the issues of uniform and inequitable capitation that were prevalent under the previous differentiated unit cost (DUC) model.
Focus on Needy Households
Under the new funding regime, needy households will receive more financial support compared to those from well-off backgrounds.
The goal is to ensure that students from disadvantaged households have equal opportunities to access university education and TVET.
The funding will be apportioned to individual students based on their level of need, replacing the previous block funding system.
“Students whose households are at the bottom of the pyramid shall enjoy equal opportunity in accessing university and TVET education. Their households shall not make any contribution towards the education of their children,” the President said.
Increased Funding and Support
To facilitate the implementation of the new framework, the government has increased funding for university education to Sh84.6 billion, up from Sh54 billion in the previous financial year.
This translates to an increase in allocation per student from Sh152,000 to Sh208,000.
Similarly, the budgetary allocation for TVETs will increase from Sh5.2 billion to Sh10 billion in the coming financial year, equating to Sh67,000 per trainee per year.
Four Levels of Need
The new funding model categorizes students into four levels of need: vulnerable, extremely needy, needy, and less needy.
The government will provide adequate support to all students, ensuring that no student is left behind.
Scholarships, loans, and bursaries will be offered to vulnerable and extremely needy students joining universities and TVETs this year.
The new funding framework will be based on four criteria: choice of program, household income band, affirmative performance, and government priority areas.
A Means Testing Instrument (MTI) will be used to scientifically determine the need levels of students.
The instrument considers variables such as parents’ background, gender, course type, marginalization, disability, family size, and composition.
Based on the MIT results, students from wealthy backgrounds will receive more loans than scholarships, while less-privileged students will receive more scholarships than loans.
Transparent Cost Declaration
Universities will be required to disclose the actual cost of their programs on their websites and share the information with the Kenya Universities and Colleges Central Placement Service (KUCCPS) before every placement cycle.
This transparency will allow students and their families to make informed decisions regarding the affordability of different programs.
Students from needy households joining universities will receive government scholarships of up to 53% and Helb loans of up to 40%, with households contributing the remaining 7% of the course cost.
For example, the government will pay a maximum of Sh76,320 for a Bachelor of Arts degree (costing Sh144,000), while students will receive a Sh57,600 loan from Helb, and the family will pay the remaining Sh10,080 per year.
For TVET institutions, government scholarships will cover up to 50% of the costs, with 30% covered by loans and households contributing 20%.
This funding structure aims to make education more accessible and affordable for students in both university and TVET settings.
Conclusion
The new funding model for universities and TVET institutions in Kenya emphasizes student-centeredness, predictability, and the encouragement of alternative revenue streams.
By allocating funding based on individual student need and providing scholarships, loans, and bursaries, the government aims to address issues of inequality and ensure equal opportunities for students from all backgrounds.
Increased funding and a transparent cost declaration process further support the goals of the new funding framework.
New Funding Model for Universities and TVETs Student Centered, Says Basic Education PS
