New university funding model disastrous to poor families: MP

Tharaka Nithi County Woman Representative Susan Mwindu has appealed to the national government to revise placement and funding method of university students.

“There are students who come from poor background but placed in the same band category with students who are from richer families in band five. Many children come from poor families and when they are affected by the University Funding model, it becomes a societal disaster,” Ms Mwindu said.

"Some of these families can only raise Sh6,000 in a month. Why compare a child from Ikumbo, Ithaeni or Ntentene whose mother cannot raise Sh2,000 per month with a family raising Sh100,000 per month? The government should revise their misplacement of any student against their category," she added.

The MP also urged the government to harmonise funds coming from national Treasury to NG-CDF, Woman Rep's office funds, and County Bursaries so that one student does not get a chunk of all these funds leaving others without a coin.

"There are bursaries from MP, Woman Rep, and Governor which has no proper framework of disbursement. If these funds are put in one basket with good arrangements and allocated depending on student's need basis, every deserving student will benefit," she said.

The new funding framework replaces the Differentiated Unit Cost (DUC) previously used to finance universities.

Unveiled on May 3, 2024, the model according to President William Ruto, aims to ensure that all eligible students receive adequate educational financial support.

Dr Ruto said that the model seeks to address the challenges encountered by public universities and technical and vocational education (TVET) institutions due to massive enrollment and inadequate funding.

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 but instead funding for students will be provided through scholarships, loans, and household contributions.

It also promotes the provision and access to quality higher education and ensures that all students are equitably and adequately supported based on their financial needs.

The  model according to President Ruto aims to ensure that all eligible students receive adequate educational financial support.

It also promotes the provision and access to quality higher education and ensures that all students are equitably and adequately supported based on their financial needs.

As the 2023 KCSE cohort prepares to embark on the next chapter of their education journey, the new funding model introduced by the government is set to be put to test.

Funding models are as follows:

Band One

This is primarily for the most needy group; a family whose monthly income is not beyond Sh5,995.

Under this category, the government scholarship will cover 70 per cent of the fees while the loan will cover 25 per cent, making the total support 95  percent.

Here, the family will pay five(5) percent of the fees and the student will receive an upkeep loan from Helb of Sh60,000.

Band Two

This targets families whose monthly income does not surpass Sh23,670 but is above Sh5,995.

In this category, the government scholarship will cover 60 per cent while the loan will cover 30 percent.

The family will pay 10 percent of the fees. Under this category, the student will receive an upkeep loan of Sh55,000.

Band Three

This is for families whose family monthly income does not pass Sh70,000 but it is above Sh23,670.

Here, the government scholarship will cover 50 percent, while the loan will cover 30 percent.

The family will contribute 20 percent of the fees supposed to be paid. Students in the category will receive an upkeep loan of Sh50,000.

Band Four

It targets families whose monthly income does not exceed Sh120,000 but is above Sh70,000.

The government scholarship will cover 40 percent while the loan will cover 30 percent.

Band Five

It is for families which earn more than Sh120,000 monthly.

In this category, families will pay 30 percent of fees.

They will receive 30 percent of the fees as a loan while their families will be required to pay 40 percent of the fees.

It further ensures timely disbursement of funds to students through their higher education institutions.