Over 70,000 students at risk of missing out on government loans, scholarships

Over 70,000 students set to join university this year are likely to miss out on government scholarships under the new funding model as the Ministry of Education hasn't received funds to cover them.

Estimates presented to Parliament show that higher education funding has a financial deficit of Ksh.48 billion that would cover scholarships, grants and loans for students.

"We have projected the number of students who qualified for funding to be 153,000 but are projecting 122,000 will require funding," Higher Education and Research PS Beatrice Inyangala said.

"As we speak now we have enough resources to cover the students right from the first year to the fourth year, through the first semester."

Documents tabled in Parliament last week by the State Department of Higher Education and Research show the gravity of the funding gap for both new and continuing students.

The ministry requires Ksh.130 billion for this financial year to cover scholarships, grants and loans but it has been allocated Ksh.84.5 billion resulting in a funding gap of Ksh.48.7 billion.

According to the higher education funding bodies, a total of 128,000 students had applied for funding as of June this year with the number estimated to rise further.

Only 32% of eligible students will receive loans. According to ministry documents, the total cost of scholarships for the entire 2023 KCSE cohort is Ksh.12.45 billion. However, the government has only allocated Ksh.4.28 billion, which is sufficient to support only 48,800 students. As a result, a staggering 73,700 students will miss out on scholarships.

The ministry requires Ksh.13.76 billion to give as loans to students but only Ksh.1.39 billion has been availed, enough to support only 12,307 students joining this year

The cash crunch will also hit continuing students hard, especially government-sponsored students in private universities.

Out of a possible 67,600 students, only 6,500 will benefit from the Ksh.574.8 million availed for them, this against a required Ksh.1.6 billion, this will leave 61,000 students financially exposed.

The government has maintained that the students will access the funding in time for them to report to university.

"I am confident that as one is availed as we collect more income, we shall enhance the budget for these loans and scholarships," said Inyangala.

The current funding challenges notwithstanding the ministry says the new funding model has made higher education more affordable as households are expected to pay only 7% of the cost of the course.

Some students especially those from rural areas have complained of difficulties in accessing the internet and huduma centres to apply for funding.