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The year when university funding model changed

The student-centered funding model allocates scholarships and loans based on students need.

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by EMMANUEL WANJALA

Realtime01 January 2025 - 18:03
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In Summary


  • Scholarships and loans are allocated across five bands using a Means Testing Instrument (MTI). 
  • Band 1 gets the most government support of up to 95 per cent, comprising 70 per cent scholarship and 25 per cent loan.

The Inaugural Graduation ceremony of The Open University of Kenya at the Konza Technopolis.


The government this year introduced a new university funding model it said would accord learners from vulnerable households equal opportunity to pursue higher education.

The student-centred funding model allocates scholarships and loans based on students' financial capabilities using a Means Testing Instrument (MTI). 

The MTI places learners across five funding bands with those in Band 1 getting the most government support of up to 95 per cent, comprising 70 per cent scholarship and 25 per cent loan.



Band 1 targets families whose monthly income is not beyond Sh5,995 and requires families to pay 5 per cent of the fees.  Students under this band are entitled to a Sh60,000 upkeep loan from Helb.

Band 2 targets families whose monthly income does not surpass Sh23,670 but is above Sh5,995. 

Government scholarship covers 60 per cent while loan allocation is 30 per cent.

Families under this category pay 10 per cent of the fees while students get Sh55,000 upkeep loan.

Band 3 is for families with monthly income above Sh23,670 but less than Sh70,000.

Government scholarship under this category is 50 per cent and 30 per cent loan while families contribute 20 per cent of the fees. Students receive a Sh50,000 upkeep loan

Band 4 is for families with monthly income above Sh70,000 but below Sh120,000.

The government scholarship covers 40 per cent while loan covers 30 per cent.

However, the new system sparked uproar with a number of students claiming they were placed in the wrong bands that requires them to pay fees that are way beyond their families’ financial capability.

Most students appealed their placement, saying they were placed in Band 5, which grants them 30 per cent scholarships and 30 per cent loans, requiring them to foot 40 per cent of the requisite fees.

Concerned by the mounting upheaval, Parliament summoned senior Education officials led by CS Julius Ogamba to explain why a funding model designed to ease fees burden from students was facing resistance from the beneficiaries.

While appearing before the National Assembly’s Education Committee on September 24, CS Ogamba admitted that the model had proven problematic to most students.

He said out of the 138,535 placed in public universities, only 75,000 students had managed to pay the requisite fees for their respective bands.

The CS blamed the erroneous placement on inaccurate information provided by learners during application for loans and scholarships on the MTI.

“The Means Testing Instrument is designed to utilise the data provided by students to determine their level of need. The accuracy of the categorisation of students into various bands depends on the correctness of the information that applicants provide,” the CS told MPs.

The Principal Secretary for the State Department for Higher Education and Research, Beatrice Inyangala, had previously told the committee that some students visited cyber cafes to apply for loans and scholarships and the shop assistants may have made errors while keying in details on students’ household income.

Ogamba said 11,132 students had appealed their banding, and the review of the cases was expected to commence this December.

The Education Committee members demanded an overhaul of the funding model, which they claimed relied on misleading variables to determine income for households.

The same day, the government unveiled a 129-member committee to review the new funding model with a view to establishing the accuracy of the variables relied upon to categorise learners.

“As a ministry, we promise to provide a conducive working environment for the national committee to deliver on its mandate effectively,” Ogamba said during the inauguration of the committee on September 25.

Speaking during the event, PS Inyangala said the government was keen on ensuring access to affordable and quality higher education.

“Today I’m convinced that the collective wisdom among the inaugurated committee as well as other stakeholders in this room will give us a solution that would make our university and TVET education sustainable for the prosperity of our students as we look forward to world-class education,” she said.

Ruto unveiled the New Higher Education Funding Model on May 3, 2023, saying it would afford learners from vulnerable backgrounds access to higher education.

The government earlier this year introduced the banding system to afford learners from vulnerable backgrounds access to university and Technical Vocational and Training Institutions (TVETS) through loans and scholarships.

While speaking during a town hall dialogue with Mombasa residents on July 28, President Ruto said the previous funding model that guaranteed every student 80 per cent loans became unsustainable as student populations increased.

“What ended up happening is that while we committed to pay 80 per cent, we ended up paying 50 per cent, some cases 45 per cent, so there was a huge funding gap and universities were struggling and we ended up affecting the quality of our education, we ended up compromising our education,” he explained.

The President said it was at this point that the government thought of changing the funding model such that the able parents pay more compared to the less fortunate.

“We said there are parents like William Ruto who can afford. Why would a child of William Ruto be given 80 per cent scholarship same as a child of mama mboga?” he asked.

The President further said the new funding model had enabled the government to increase budgetary allocation to universities from Sh45 billion to Sh82 billion in the current financial year, effectively saving universities from economic meltdown.

“When I came into office, they had a Sh60 billion debt, it was near a crisis so it became necessary,” Ruto said.

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