State ends funding for students in private varsities

State-sponsored students who choose to join private universities will have to pay their own tuition costs in a policy shift aimed at resolving the funding crisis in public universities.

Cabinet Secretary for Education Ezequiel Machugo told Parliament on Thursday that this is part of reforms in the higher education sector to make universities financially sustainable.

Public institutions are struggling to meet liabilities such as payroll taxes, retirement benefits and insurance premiums for employees, with outstanding bills ballooning to Sh62 billion amid a drop in state charges.

“From now on, no government grant will go to a private university, and parents who choose to enroll their children in private institutions will have to bear the cost,” he told the National Association on Education and Governance’s (PICEG) Public Investment Committee.

His remarks come a day after President William Ruto announced a new funding model for universities and Technical and Vocational Education and Training (Tvet) institutions that will be student-centered, with funding allocated to individuals according to their level of needs.

is reading: The state is introducing a new varsity, Tvets funding model

Student funding shall combine scholarships, loans, and home contributions on an academically determined graduate scale. Students will be categorized into four levels of need – poor, highly needy, needy, and least needy.

Under the new model, universities and Tvets will no longer receive crowdfunding in the form of grants based on differentiated unit cost (DUC), as is currently the case.

To facilitate implementation of the new framework, the state has increased funding for university education to Sh84.6 billion from Sh54 billion earmarked in the current fiscal year as loans and grants. This translates into an increase in allowance per student from Sh152,000 to Sh208,000.

Budget allocation for Tvets will increase from Sh5.2 billion to Sh10 billion from July, which translates to Sh67,000 per year per apprentice.

is reading: Private Varsity is poised for a windfall in its new funding policy

“We have already written to the Attorney General to submit an amendment to Parliament to address the issue of student placement and to ensure that it is in accordance with the law,” said Mr Machugo.

Private universities began accepting government-sponsored students (GSS) in 2016 in a move by the state to address overcrowding in public institutions.

The Kenya Universities and Colleges Central Placement Service (KUCCPS) has since allowed students to choose courses from any university, despite their different financial backgrounds.

“The committee is also in the process of coming up with a bill that would functionally narrow any loose ends to ensure that public universities do not continue to suffer at the expense of private universities,” said Wanami Wamboka, President of PICEG.

However, a section of young lawmakers led by Embakasi East MP Babu Owino rejected the new funding framework, saying it would deny Kenyans access to a quality education.

“The new policy of financing higher education is a money-laundering scheme,” he told reporters in the parliament buildings. “If the government fails to fund students 100 percent, we will call for nationwide demonstrations.”

Private universities currently have a total of 78,650 GSS with a DUC requirement of Sh12.28 billion against the unrivaled budget allocation of Sh3.37 billion – resulting in 21 percent of the DUC – forcing some of them to increase their tuition fees.

Similarly, insufficient state funding, low student enrollment and cancellation of parallel programs have resulted in public universities struggling to meet staff obligations.

The number of candidates meeting the minimum university entrance qualification for the Kenya Certificate of Secondary Education Examination (KCSE) 2022 has increased by 19 percent to 173,345 compared to 145,776 registered in the previous year.

Over the past five years, almost all students with a grade of C+ and above have been accepted into regular undergraduate programs, which has reduced the pool of learners available to private universities and self-sponsored degree programs at public universities.

A sharp decline in the number of self-sponsored students enrolling in public universities has led to cash flow challenges resulting in a freeze on new hires and a slowdown in expansion plans as they struggle with huge debt.

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