New University Funding Model Sparks Outrage among Kenyans

Friday, 06 September, 2024

The Means Testing Instrument (MTI), implemented by the government to allocate educational funding for Technical and Vocational Education and Training (TVET) institutions and universities, has sparked significant unrest across the nation since its inception. The MTI is designed to ensure that every Kenyan student receives financial assistance proportionate to their economic circumstances. For students deemed highly vulnerable, the new funding framework categorizes them into "Band 1," where the household contributes a mere 5% of the program's total cost. Meanwhile, 25% is provided through a loan, 70% through a government scholarship, and an additional living allowance loan of Ksh. 60,000 is awarded. However, the student body has expressed numerous grievances regarding the efficacy of this new funding paradigm.

One major concern is the MTI’s inability to accurately categorize students into their appropriate financial bands. The instrument appears oblivious to situations where a student may have attended a prestigious secondary school under a sponsorship program, only to be left unsupported by the sponsor for higher education expenses. Furthermore, the model automatically excludes students from Band 1 if their household income exceeds Ksh. 5,000, even though a parent may have several other children enrolled in various institutions, all of whom require fee payments.

Consider the case of a student admitted to a medical program at a public university, where the annual tuition is Ksh. 600,000. If categorized in Band 1, the student’s family is required to contribute 5% of the total program cost, equivalent to Ksh. 30,000 annually. If the family is unable to raise this amount, the student may need to rely entirely on a loan, amounting to Ksh. 180,000 per year, or Ksh. 1,080,000 over six years. Assuming the government imposes a 4% interest rate on this loan, by the end of the six years, an additional Ksh. 432,000 in interest will accrue. In total, the student would be indebted to the government for Ksh. 1,080,000 (tuition loan over six years), Ksh. 360,000 (upkeep loan), and Ksh. 432,000 (interest), culminating in a staggering Ksh. 1,872,000 by the time they complete the course—excluding penalties.

Another point of contention is the significant increase in tuition fees under the new funding model. For example, an education degree, which previously ranged between Ksh. 110,000 and Ksh. 150,000 for parallel programs, now costs Ksh. 180,000 or more. Indeed, some private universities are now more affordable than their public counterparts.

It is essential to recall that approximately a decade ago, most public universities charged no more than Ksh. 35,000 annually for most programs, and students were granted upkeep loans ranging from Ksh. 35,000 to Ksh. 60,000. Whether the Differentiated Unit Cost or the MTI is more burdensome remains a topic of deliberation, as illustrated by the discourse between the president and university leaders in the referenced debate: https://youtu.be/2sPJnuYVXNo.