New Funding Model

The Higher Education Funding Model

The New Higher Education Funding Model, unveiled by President William Ruto on May 3, 2023, aims to address challenges encountered by public universities and Technical and Vocational Education (TVET) institutions due to massive enrollment and inadequate funding. This new funding framework replaces the Differentiated Unit Cost (DUC) previously used to finance universities. The model prioritises a student’s financial need and separates placement from funding. Under this model, universities and TVET institutions will no longer receive block funding in the form of capitation. Instead, funding for students will be provided through scholarships, loans, and household contributions. 

Following the introduction of the new model, students will have access to scholarships and loans to finance their higher education.

Government Scholarships
 The Universities Fund will offer scholarships to students ranging from 30% to 70% based on their level of need. Any remaining deficit will be covered through household contributions and loans. Students interested in receiving scholarships must formally apply through the Higher Education Financing (HEF) portal, accessible at www.hef.co.ke. The Means Testing Instrument (MTI) tool will be utilized to assess the level of need for funding students who apply for scholarships.
 
Key Players
The new Higher Education Funding Model is being implemented collaboratively by several key entities, including the Universities Fund (UF), 
 

 

 

Higher Education Loans Board (HELB), Kenya Universities and Colleges Central Placement Service (KUCCPS), and the State Department for Technical and Vocational Education and Training.

Under this model, UF will grant scholarships to students, HELB will extend loans to students, and KUCCPS will oversee the placement of KCSE graduates into higher learning institutions. Additionally, the institutions will act as recipients of the loans and scholarships provided to students in the form of fees, while parents will contribute household funds toward their children’s education.

More about TVET Education Funding at KTVC click here