The Government has increased budgetary allocation to higher education sector by Sh55 billion to facilitate learning activities under the new higher education funding model.

President William Ruto in his Jamhuri Day address at Uhuru Gardens said total allocation to the education sector had been increased by an additional Sh127 billion.

“Out of this, Sh46 billion will support the new university funding model, an additional Sh9 billion to cover our TVET funding model,” he said.

The new funding framework for universities and colleges unveiled in May 2022 apportions funding to individual students according to their level of need.

Implementation of the new funding framework kicked off at the start of this financial year, shifting financing from block funding for the institutions as had been the case under the differentiated unit cost (DUC) model.

While unveiling the new framework, President Ruto noted the State had increased funding for university education to Sh84.6 billon from Sh54 billion allocated in the 2022/2023 financial year.

“Our expenditure on training, learning and education in general is a most appropriate investment in the development of the human capital necessary in our economic progress,” said President Ruto.

The new model has delinked student placement with funding, thus requiring students to submit applications to the Higher Education Loans Board (HELB) and Universities Fund (UF) for loans and scholarships, respectively.

Funding to students now combines scholarships, loans and household contributions based on level of need. To be qualify for State funding, applicants ought to have been placed by the Kenya Universities and Colleges Central Placement Service (KUCCPS).

The government resolved that the new financing model that seeking to phase out the on DUC model will ease the financial burden in universities whose pending bills have ballooned to more than Sh60 billion. The number of candidates meeting the minimum university entry qualification in the 2022 Kenya Certificate of Secondary Education (KCSE) examination rose by 19 percent to 173,345 compared to 145,776 recorded the previous year.


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