Ruto States New Education Funding Model Will Solve Debt Crisis in 3 Years

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President William Ruto on Tuesday justified the government’s push to have the new funding model for higher learning institutions in place insisting that is the only way to end the debt crisis plaguing public universities.

Following a meeting with university vice chancellors at State House, the President stated that the new model is expected to deliver the varsities from debt within three years.

“The vice-chancellors confirmed that the financing model is working and in 3 years will sort out the financial challenges facing our universities,” stated Ruto.

This new funding framework initiated in 2023 for varsities eliminates automatic government sponsorship for students who attain the cut-off points to join public universities.

The University of Nairobi (UoN) Kikuyu Campus

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UoN

Instead, it mandates that students once placed by the Kenya Universities and Colleges Central Placement Service, will apply for a government scholarship if in need of funding.

“Placement by the Kenya Universities and Colleges Central Placement Service will now be based on merit and choice. Students will apply separately for financial assistance, including government scholarships and loans “explained the PS for the State Department of Higher Education and Research, Beatrice Inyangala.

The new funding model also stipulates that university students will be allocated scholarships and funding which will be calculated based on the cost of the programme of study.

“The model additionally provides for actual funding criteria based on the cost of university programs”, added the principal secretary.

Similarly, the funding model also prioritises a student’s financial need.

The principal secretary further explained that the model classifies students into five categories based on the level of household incomes.

In reference to the debt elimination strategy mentioned by the President, the new formulae facilitates universities to benefit from diversified funding streams, including student financing, research grants, capital infrastructure grants as well consultancy services.

NFM replaces the Differentiated Unit Cost (DUC) model previously used to finance universities where the government issued capitation funds to tertiary institutions every financial year.
 

University students during a past graduation ceremony

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