- Higher Education Loans Board’s initial budget of Sh31.9 billion has been reduced by Sh710 million.
- Universities Fund meant for scholarships was trimmed by Sh2.6 billion from the earlier allocated Sh19.6 billion.
A major crisis looms in the education sector after it emerged that thousands of students set to join universities in September might miss out from government funding.
Higher Education Principal Secretary Beatrice Inyang’ala on Thursday told MPs they are unable to cater for loans and scholarships for the 2023 KCSE exam candidates that have already been placed in various universities.
Some 153,292 students are set to join university.
The PS told the National Assembly Education Committee chaired by Tinderet MP Julius Melly that they require Sh22.9 billion to sustain the students.
But in a budget review occasioned by the withdrawal of the Finance Bill 2024, Higher Education Loans Board’s initial budget of Sh31.9 billion has been reduced by Sh710 million.
Universities Fund meant for scholarships was trimmed by Sh2.6 billion from the earlier allocated Sh19.6 billion.
“This leaves 153,292 year 1 students (KCSE 2023 candidates)) who were placed by Kenya Universities and Colleges Central Placement Services (KUCCPS) in universities inadequately funded,” the PS told lawmakers.
“The students are due to report to their respective universities in September 2024. The resultant deficit for the Financial year 20204/2025 printed estimates is Sh22,897 million.”
Under the new funding model, students from families with Sh5,995 income were set to enjoy a 95 per cent of government funding.
Families with earnings of between Sh5,995 to Sh23,670 will benefit from 90 per cent while those ranging between Sh23,671 and Sh70,000 will get 80 per cent of government funding.
Those from families with an income of over Sh120,000 were to be funded at the tune of 60 per cent.
Between Sh70,001 and Sh119,999 will get 70 per cent of funding.
Inyang’ala who was appearing before the committee to defend the department’s budget in the supplementary 1 also disclosed that the cuts will affect continuing students.
She said the current allocation for the Differentiated Unit Cost (DUC) funding for the continuing students is only Sh23 billion, which represents 38.75 per cent, falling below the ideal funding level of 80 per cent.
“The state department is requesting a higher allocation of 50 per cent of the DUC, which is Sh29,024,632,379 to enable universities operate optimally. This indicates there is a significant shortfall in the current funding allocation for DUC, and that an increase in funding is needed to meet the ideal level of 80 per cent,” she said.
The PS further regretted that ongoing government sponsored students in private universities risk not completing their studies as the budget has been reduced by Sh1.8 billion from an initial Sh2.3 billion to the current Sh574.8 million.
The students are currently being funded at 10 per cent DUC level.
“With reduced funds, students may struggle to cover the increased costs of tuition fees, living expenses and other essential student services, making it impossible for them to sustain their academic pursuits,” the PS said.
MPs sitting at the committee expressed dissatisfaction with Treasury’s priorities, especially when implementing the budget cuts.
“How did the National Treasury wake up one day and make such huge cuts without carrying out consultations?” Melly posed.
Nyamira Woman Representative Jerusha Momanyi accused the Treasury of fuelling the ongoing protests with the cuts that only serve to increase public rage.
“Tell us the principle you used to reduce money for scholarships and HELB given that we are here because of these Gen Z’s. Do you want to take us back to the streets?” Lugari MP Nabii Nabwera said.