Why Ruto’s new policy on education funding evokes cautious optimism

By Mumbi Mutoko

President William Ruto recently unveiled a groundbreaking funding model for higher education that promises to be a boon for students from underprivileged households. This initiative shifts the paradigm of university financing, marking a significant departure from the status quo.

President Ruto’s newly announced measures pave the way for state-funded university education for Kenyan students, predicated on a tiered categorization system that classifies recipients into four distinct groups: extremely needy, needy, vulnerable, needy, and less needy. The intention behind these categories is to ensure that the most deserving candidates receive the much-needed financial assistance to pursue degree, certificate, and diploma courses.

A pivotal change within this framework is the introduction of the Means Testing Criteria (MTI), a formula devised to serve as the litmus test for identifying those students whose economic circumstances truly necessitate state support. 

“For the first time, students from households at the bottom of the pyramid shall enjoy equal opportunity in accessing university and TVET education. Their households shall not contribute to their children’s education,” the President said.

Presently, the government extends automatic state funding to all students placed by the Kenya Universities and Colleges Central Placement Service (KUCCPs) who gain admission to tertiary institutions, irrespective of their economic background. However, this new strategy refocuses this largesse by targeting those genuinely requiring financial backing.

Under the new dispensation, 173,345 students who achieved a C+ grade or higher must submit fresh applications for scholarships, with the selection process meticulously considering merit, level of need, national priorities, and affirmative action. This shift ensures that the allocation of resources is both judicious and equitable, a departure from the previous approach where automatic sponsorship often left out students in real need.

Nonetheless, these commendable measures are not without their critics. Some argue that students who obtained an A in the Kenya Certificate of Secondary Education (KCSE) examinations but do not fall within the identified need categories will be left to finance their higher education. President Ruto, however, counters such concerns by emphasizing the necessity of balancing resources amidst the proliferation of tertiary institutions, which has led to reduced funding per student.

President Ruto’s proposal echoes his earlier sentiments, wherein he underscored that some parents can indeed support their children’s education without government intervention. This new policy is a strategic attempt to streamline the allocation of funds and ensure that those who need it most receive the necessary support.

In the preceding structure, the Higher Education Loans Board (HELB) handled student loan applications, while the University Fund’s responsibilities revolved around distributing capitation grants directly to universities. The disbursement was calculated using a differentiated unit cost, a metric intricately linked to the program’s expenses.

Amongst critics are parents and students, who have voiced dissatisfaction with the placements they’ve been allocated. A recurrent theme in these narratives is the perceived injustice where students with stellar grades are excluded from pursuing their chosen degrees. Astonishingly, a subset of top-performing students with A grades has found themselves enrolled in Diploma Courses.

However, Agnes Mercy Wahome, the chief executive of the Kenya Universities and Colleges Central Placement Service (KUCCPS maintains that the placement process was meticulously anchored in choice and merit.

Also supporting the new policy is Prof. Daniel Mugendi, Vice-Chairman of the Vice Chancellors of Public Universities in Kenya and Vice-Chancellor of Embu University, who has dismissed claims that the new model would exacerbate the burden of school fees for parents.

Mugendi questioned the sudden focus on increased fees, given that the revised model does not escalate the expenses tied to university education. 

“I am surprised that we are talking about increased fees. Indeed we cannot be in a better time than now. No fee has been increased. Indeed, if you look at the model that the government has proposed, it is a model that is going to favour anyone,” Mugendi said.

Explaining the new funding model for higher education

University Students

The government will provide complete funding for vulnerable students, constituting 29% of university entrants. This encompasses 45,000 university students and 42,000 in Technical and Vocational Education and Training (TVET) institutions.

Students from comparatively less vulnerable backgrounds will benefit from government scholarships covering up to 53% and government loans up to 40%, resulting in a comprehensive financial aid package of 93%.

Household contribution: The students will bear a modest 7% of the expense.

Those from financially able backgrounds will secure government scholarships encompassing a maximum of 38% of the program’s cost, alongside 55% in government loans. Students will contribute the remaining 7%.

Students enrolled in private universities will be eligible for government loans, but government scholarships will not be extended to this category.

TVET Students

The government will fully fund needy students enrolling in TVET programs.

Less needy students pursuing TVET courses will gain access to government scholarships, covering up to 50%, and government loans, amounting to 30%. Their households will be responsible for contributing 20%.

Able students entering TVET programs will receive financial support comprising 32% in government scholarships and 48% in government loans. Equally, their households will participate by contributing 20%.