Gov't to increase funding for universities, TVETs by Ksh.30.6B in new financing plan

President William Ruto has announced plans by the State to increase the funding of universities as well as Technical and Vocational Education Training Institutions (TVETs) by Ksh.30.6 billion to Ksh.84.6 billion in the 2023/24 financial year, as part of a new higher education funding model.

This translates to a 50 per cent increase in total funding and a 37 per cent growth in funding per university student to Ksh.208,000, up from Ksh.152,000.

The budgetary allocations for TVETs will also increase from Ksh.5.2 billion to Ksh.10 billion.

Addressing the press at State House in Nairobi on Thursday, President Ruto noted that establishment of the new funding model's blue print was inspired by the fact that institutions of higher learning face funding challenges primarily due to the massive enrolment of students.

According to President Ruto, under the new funding model, which will commence with a new cohort of 173,126 students joining universities and 145,325 students joining TVETs, the institutions will not receive block funding in form of grants based on differentiated unit costs.

"The government has resolved that university funding will hence be student centred and be apportioned to individual students according to their level of need. Funding to students shall combine scholarships, loans and household contributions on graduated scale, scientifically determined by means testing instrument," he said.

Education Cabinet Secretary Ezekiel Machogu will take immediate action to operationalise the funding model in which students will be categorised according to 3 levels of need; vulnerable, less vulnerable and able; they will then receive funding through government scholarships and loans.

"The government shall fully fund the vulnerable students who comprise 29% of students joining universities and these are 45,000 students who will be funded fully by the government. In our TVET institutions, 42,000 students will equally be funded fully by the State," he said.

Students from less needy households joining university will receive government scholarships of up to 53 per cent and loan of up to 40 per cent, according to President Ruto, while able students will be funded up to a maximum of 38 per cent of the cost of the program and 55 per cent in form of loans.

Those joining TVETs will be funded to the tune of 32 per cent for government scholarships and 48 per cent for government loans, the Head of State said.

Once the funding model is implemented, universities will be required to declare and publicise the actual cost of their programs.

"No public university shall levy additional charges or raise fees without the approval of the university funding board," said the President.

"The Universities board shall share information with students on availability of sources of funding through its portal and streamline the application program."

President Ruto added that starting from the 2023/24 academic year, university placement will not be determined by funding.