Kenya’s New University Funding Model: Detailed Breakdown of Costs and Income-Based Bands

The Ministry of Education has detailed the costs associated with its new university funding model. On Friday, August 16, Higher Education Principal Secretary (PS) Beatrice Inyangala explained that the funding structure is divided into five categories, or bands, based on families’ income levels.

According to PS Inyangala, scholarship and loan allocations are determined by the income information provided during the scholarship application process. The funding model is structured as follows:

• Band 1: Families earning up to KSh 5,995 per month. The government will cover 70% through a scholarship, with an additional 25% in loans, leaving the family to contribute 5%. The upkeep loan for students in this band is KSh 60,000.
• Band 2: Families earning up to KSh 23,670 per month. The government will provide 60% in scholarships and 30% in loans, with the remaining 10% contributed by the family. The upkeep loan is KSh 55,000.
• Band 3: Families earning up to KSh 70,000 per month. The government will cover 50% through scholarships and 30% through loans, requiring a 20% family contribution. The upkeep loan is KSh 50,000.
• Band 4: Families earning up to KSh 120,000 per month. The government will cover 40% in scholarships and 30% in loans, with the family contributing the remaining 30%. There is no mention of an upkeep loan for this band.
• Band 5: Families earning over KSh 120,000 per month. The government will provide 30% in scholarships and 30% in loans, leaving 40% for the family to cover. The upkeep loan is KSh 40,000.

This new classification has sparked significant controversy, with many Kenyans criticizing the model as unfair. Concerns have been raised about the criteria used to categorize families, with some individuals reporting that they were placed in incorrect bands despite accurately reporting their income.

In response to these concerns, the government has instructed universities to provide updated fee structures to first-year students by Monday, August 19, following a directive from President William Ruto. Education Cabinet Secretary Julius Ogamba announced that new admission letters for the 2023 KCSE cohort have been issued, reflecting the revised fees under the student-centered funding model.

The model aims to tailor financial support to students’ needs, taking into account factors such as family income and socio-economic background. The Higher Education portal will remain open for inquiries and new applications, ensuring that all eligible students have access to the necessary financial assistance.