In 2024, President William Ruto introduced a new university funding and fee payment model in Kenya for government-sponsored students. Unlike the previous model, which relied solely on KCSE grades, this new approach considers a student’s family income and poverty level to determine funding through scholarships, loans, and parent contributions. Below is a detailed explanation of how this new model works.
New University Fee Payment Model:
In the past, students who scored a KCSE grade of C+ or above automatically qualified for government sponsorship for degree programs. The new model shifts the focus to a student’s financial need, ensuring that funding is based on household income rather than grades alone.
Categories of Student Financing in the New Model:
The new funding model classifies students into three categories, based on their family’s financial situation:
- Vulnerable Students (Level 1)
- Less Vulnerable Students (Level 2)
- Able Students (Level 3)
1. Vulnerable Students:
These students come from needy families and will have their university fees fully covered by the government. Funding will come through a combination of scholarships and loans, with no financial contribution required from parents.
- Government funding: 100%
- Scholarships: Majority portion
- Loans: Remaining portion
- Parent contribution: None
2. Less Vulnerable Students:
Less vulnerable students are those from moderately needy families. They will receive 93% of their fees from the government, with the funding divided between scholarships and loans. The remaining 7% will be paid by parents.
- Government funding: 93%
- Scholarships: 53%
- Loans: 40%
- Parent contribution: 7%
3. Able Students:
Able students come from households with higher income. They will also have 93% of their university fees covered, but a larger portion of this will be funded through loans, while scholarships will make up a smaller part. Parents will pay the remaining 7% of the fees.
- Government funding: 93%
- Scholarships: 38%
- Loans: 55%
- Parent contribution: 7%
Key Differences Between Less Vulnerable and Able Students:
- Less Vulnerable Students receive more scholarships (53%) compared to Able Students, who receive 38% scholarships.
- Able Students receive more loans (55%) compared to Less Vulnerable Students, who receive 40% loans.
Methodology for Determining a Student’s Poverty Level:
The government will use the Higher Education Loans Board (HELB) method to categorize students based on poverty indicators and family income. HELB’s system already evaluates family income to allocate loans, making it the primary tool for determining which category a student falls into.
How the New Model Works:
- The new university and TVET funding model will apply to new students joining university from 2024 onwards.
- Continuing government-sponsored students will still be funded under the old model.
- Eligible students will need to apply for government scholarships through online portals provided by the government.
- Loans will be applied for through HELB, as was the case in the previous model.
- Students in private universities will only be eligible to apply for loans and not government scholarships.
Conclusion:
Kenya’s new university funding and fee payment model is designed to make education more accessible to students based on financial need rather than academic performance alone. The government’s focus on family income through scholarships, loans, and parent contributions ensures that students from needy families receive full funding, while those from wealthier households contribute more towards their education.
This article explains the new university funding model in Kenya, outlining the different categories of student financing and how poverty levels determine the amount of government support received.
