Private universities have been dealt a significant blow as the Parliament endorses a budget cut of Sh1.8 billion for government-sponsored students (GSS) enrolling in these institutions for the upcoming year starting in July.
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This decision is aligned with a strategic policy shift introduced by the State, wherein GSS students selecting private universities will now be required to independently cover their tuition expenses.
This strategic move aims to counteract the financial challenges that have beset public universities, leading to difficulties in fulfilling essential obligations such as payroll and pensions. The cumulative effect of these challenges has propelled outstanding debts to reach a staggering Sh62 billion by May.
The National Assembly Budget and Appropriations Committee (BAC), in its comprehensive report on the 2023/2024 Budget, has recommended a decisive action: “Reduce Sh1.8 billion (recurrent) from government-sponsored students in private universities.”
The governmental response to the overarching financial concerns has encompassed a series of comprehensive reforms. A prime example is the introduction of a novel funding model, crafted to restore enduring financial viability to both public universities and Technical and Vocational Education and Training institutions (TVETs). This revamped approach entails the allocation of State support through a combination of scholarships, loans, and bursaries, diverging from the formerly uniform and notably inequitable capitation system witnessed under the differentiated unit cost (DUC) model.
As a result of these transformations, GSS students opting for enrollment in private universities will henceforth qualify solely for loans extended by the Higher Education Loans Board (Helb).
The bedrock of this new funding paradigm is centered around the individual student’s needs. Funding distribution is now intricately based on four distinct levels of need: vulnerable, extremely needy, needy, and less needy.
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A notable historical context informs this funding overhaul. In 2016, private universities opened their doors to government-sponsored students, an initiative orchestrated by the State to alleviate overcrowding in public institutions. The Kenya Universities and Colleges Central Placement Service (KUCCPS) allowed students, regardless of their financial backgrounds, to choose courses from any university. Nevertheless, in the past five years, a significant majority of students with C+ grades and above were admitted to regular university programs, thereby reducing the pool of potential candidates available for private universities and self-sponsored degree programs within public universities.
In a comprehensive assessment of higher education financing, the BAC has recommended a notable augmentation in the budget allocated to the Higher Education Loans Board for the upcoming 2023/2024 fiscal year: “Increase Sh12.5 billion (Recurrent) for the Higher Education Loans Board,” articulated the committee under the leadership of Kiharu MP Ndindi Nyoro.
Amidst these intricate shifts, the educational landscape endeavors to strike a balance between accessible funding, equitable opportunity, and enduring institutional stability.
