A government plan intended to improve fairness in university education has instead left thousands of Kenyan students stranded. Under the New University Funding Model (NFM), students were to be categorised by need and supported accordingly; however, errors, delays, and lack of funding have transformed the model into a national education crisis.
The funding model categorises students into five bands based on a Means Testing Instrument (MTI), which determines the level of government support each student receives. Unfortunately, many students have been misclassified, receiving less financial aid than they need.
This situation has led to students missing classes, skipping exams, and dropping out — not due to their performance, but because the money isn’t forthcoming.
According to HELB Chief Executive Officer Geoffrey Monari, by 17 April at least 4,621 university students had filed appeals over faulty financial categorisation. Monari confirmed: “Over 42,000 students appealed the categorisation, but none have been processed because we do not have the money and no one has told us to allocate it.”
Prof Daniel Mugendi, Chairperson of the Public Universities Vice-Chancellors Committee, noted that a significant number of students — especially those who filled out the forms at cyber cafés — provided inaccurate or inconsistent information, leading to flawed categorisations.
“You’d find siblings from the same home placed in different bands — one says they are needy, the other claims to have means,” Prof Mugendi explained. Despite this, he emphasised that universities had been advised not to lock students out of exams or deny access to services due to funding delays.
Students like Grace Wangare, a student at Multimedia University, were forced to pay over Sh45,000 after the university mandated that students must clear first-semester fees and pay 5% of second-semester fees before registering for units.
“I was placed in Band 4. The total first-semester fee was Sh151,750. The government paid Sh60,700 to the college, while HELB and my family were supposed to pay Sh45,525. Without the funds, the college told me to take an academic leave. My parents had to borrow Sh45,525 from a shylock to cover HELB’s part so I could sit exams. HELB didn’t send the first-semester money, leaving many students, including me, in a tough spot. It was real psychological torture,” Ms Wangare said.
Similarly, Sydney Mwangi, also at Multimedia University, was placed in Band 4 under the new funding model — an outcome that meant he would receive little to no government support. Coming from a financially challenged background, he was shocked to be told he needed to pay Sh125,000 to continue his studies. The high fee left him struggling to make ends meet and nearly cost him the chance to sit his exams. His situation reflects the hardship many students are facing due to incorrect classification and delayed funding under the new system.
Introduced in 2023, the new funding model categorises students into five bands based on a Means Testing Instrument. While intended to allocate resources equitably, the system has faced criticism for its opaque criteria and alleged inaccuracies. Of the 113,105 processed applications, over half were placed in Bands 4 and 5, receiving minimal support.
Public universities across Kenya have raised serious concerns about the operational impact of the new model. Vice-chancellors, through the Public Universities Vice-Chancellors Committee, say the institutions are financially strained and struggling to support students who have been wrongly categorised or whose funds have not been released.
Prof Daniel Mugendi, Chair of the committee and Vice-Chancellor of Embu University, stated: “We are asking universities not to block students from exams, but institutions also need money to run. It is very difficult.”
The crisis stems from student misclassification under the new funding model, delayed government disbursements, and financial strain on universities. Errors in the MTI led to over 42,000 appeals, none of which have been resolved due to lack of funds. With insufficient capitation, some universities are demanding fees upfront, despite ministry orders — leaving many students unable to register or sit exams.
The government, through the Higher Education Loans Board (HELB) and the Ministry of Education, has indicated plans to address the issue by reviewing the over 42,000 student appeals and correcting misclassifications under the New University Funding Model.
HELB CEO Geoffrey Monari stated they are awaiting funding and formal instructions from the National Treasury to begin reallocations. Additionally, the government has directed universities not to bar students from classes or exams due to delays, while promising to streamline the Means Testing Instrument process to prevent future errors. However, no clear timeline has been provided for when the appeals will be resolved or funded.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
