University Funding Takes A Negative Twist
The government has recently revised the funding formula for university and college students, shifting from the initial plan designed to relieve financial burdens on parents who couldn’t afford higher education costs. In this updated model, all households are now expected to contribute to education expenses.
This revised plan introduces scholarships, tuition fees, household contributions, and student upkeep. The previous four student categories, which included vulnerable, extremely needy, needy, and less needy, have been expanded to five and are now referred to as “bands.”
Under this revised formula, all students within these five bands will receive financial support ranging from Sh40,000 to Sh60,000, depending on their household’s financial situation. Unlike the original plan that exempted the “vulnerable and extremely needy” from household costs, this new approach expects all households to share in the educational expenses.
The concerns over the initial plan’s long-term sustainability prompted this revision, as vulnerable and extremely needy students were initially exempt from household costs. The adjustments mean that students in the different bands will receive varying proportions of scholarships and loans, with household contributions varying based on their category.
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This new approach necessitates an estimated additional Sh7.5 billion to cover scholarships for new students, with a projected cumulative cost of approximately Sh15 billion for one academic year. However, the release of funds remains pending, causing financial challenges for higher education institutions.
Many universities are reallocating funds meant for continuing students to support new students due to delayed government funding.
Despite these challenges, university officials are actively managing their institutions while awaiting the disbursement of funds, with the hope that the money will be transferred in the coming weeks as the categorization and validation process continues.
The delay in fund disbursement has led to scrutiny of the National Treasury, and it remains uncertain when universities and colleges will receive the required funds.
University Funding Takes A Negative Twist
