The New University Funding Model: Kenya’s Higher Education Shift
Critics argue that the model may disadvantage students from low-income backgrounds, potentially widening the gap between the privileged and the marginalized. Moreover, questions have been raised about transparency in the allocation of funds and the preparedness of institutions to implement the new framework. On the other hand, supporters claim that the model promotes accountability and aligns funding with actual student needs and institutional performance.
As the government reviews the model in response to public outcry, the outcome will be pivotal in shaping the future of higher education in Kenya. It must strike a balance between the goals of financial viability and the principles of inclusivity, quality, and equal opportunity.
New University Funding Model Explained
Introduced in mid-2024, the new model moves away from the traditional block funding system where universities received lump-sum allocations based on student enrollment. Instead, it adopts a Differentiated Unit Cost (DUC) approach, allocating funds based on the actual cost of academic programs.
Under this system:
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Students cover a larger portion of tuition fees.
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Funding is categorized into:
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Government scholarships
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Student loans
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Family contributions (based on income levels)
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While proponents argue that the model ensures efficient use of resources and targets financial aid to the most vulnerable, critics say it shifts the financial burden onto students and families.
Growing Resistance from Students and Parents
The model has met with significant backlash from students, parents, and education stakeholders. Many families fear the increased costs will make higher education inaccessible for low-income students, thereby exacerbating inequality.
Student protests have erupted across the country, demanding a rethinking of the policy.
“We understand the need for reforms, but they shouldn’t come at the expense of access to education,” said a student leader from the University of Nairobi. “Education is a right, not a privilege for the wealthy.”
Government Response and Committee Formation
In response to mounting public pressure and nationwide protests, President William Ruto appointed a 129-member committee tasked with conducting a comprehensive review of the New University Funding Model. This diverse team was carefully selected to ensure representation from all key education stakeholders, and its primary objective is to assess the fairness, effectiveness, and sustainability of the current funding system.
The committee includes education experts, university administrators, student leaders, financial analysts, public policy advisors, and representatives from civil society. Each group brings a unique perspective to the table. Education experts contribute evidence-based insights and propose pedagogical reforms, while university administrators focus on institutional viability, budgeting, and policy implementation.
Student representatives advocate for affordability and equitable access, especially for marginalized communities. Financial stakeholders, on the other hand, assess the economic implications and explore feasible public-private partnerships. Together, the committee aims to deliver a balanced solution that aligns government funding priorities with the goal of inclusive, high-quality education for all.
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Education Experts
Roles: Researchers, curriculum developers, pedagogical specialists.
Interests: Evidence-based teaching practices, learning outcomes, educational equity, innovation in teaching methods. -
University Administrators
Roles: Deans, provosts, registrars, department heads.
Interests: Institutional management, academic policy, budgeting, enrollment, accreditation, student success metrics. -
Student Representatives
Roles: Elected student leaders, union representatives, advocacy group members.
Interests: Affordability, access to resources, academic fairness, student wellbeing, inclusion, and governance participation. -
Financial and Public Policy Stakeholders
Roles: Government officials, education department staff, donors, funding agencies, think tanks.
Interests: Budget allocations, return on investment in education, workforce alignment, accountability, regulatory frameworks.
Their mandate includes:
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Assessing the affordability and fairness of the current model.
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Proposing ways to ensure sustainability without excluding marginalized groups.
Challenges Facing Public Universities
Kenyan public universities have, for many years, grappled with chronic underfunding—a challenge that continues to threaten the quality and sustainability of higher education. As financial support from the government has dwindled, these institutions have been forced to operate under increasingly constrained budgets.
As a result, several negative outcomes have emerged. To begin with, many universities have struggled to meet their payroll obligations, leading to delays or non-payment of staff salaries. This situation has demoralized academic and non-academic personnel, affecting productivity and service delivery.
Additionally, the physical infrastructure in many institutions has steadily deteriorated. Lecture halls, laboratories, libraries, and student hostels often lack proper maintenance, which compromises both the learning environment and safety standards.
Furthermore, research opportunities have become limited due to insufficient funding for academic projects, innovation, and international collaboration. Unless addressed urgently, this underfunding may severely undermine Kenya’s vision of building a knowledge-driven economy through robust and inclusive higher education.
The decline of self-sponsored programs—once a vital revenue source—has worsened the situation, especially since the launch of free secondary education.
University vice-chancellors have welcomed the funding review but are calling for reforms.
💬 “We cannot build a knowledge-based economy without adequately funding our universities,” said a senior academic from Kenyatta University.
[Learn also: How to Apply for HELB Loan Online in Kenya (2025 Guide)]
Looking Ahead: A Bigger Picture
The crisis surrounding the New University Funding Model reflects broader issues in balancing access, equity, and quality in higher education. Fortunately, the review offers a chance to create a sustainable and inclusive model.
Potential reforms being considered include:
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Increasing government funding through innovative public financing
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Expanding private partnerships to reduce pressure on state resources
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Strengthening HELB to offer more student loans on flexible terms (HELB official site)
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Introducing performance-based funding to reward efficiency and better outcomes
Conclusion: A Pivotal Moment for Reform
The ongoing review of the New University Funding Model marks a pivotal moment for Kenya’s education system. It presents an opportunity to address current financial challenges and lay the foundation for an equitable, future-ready education sector.
The government must prioritize fairness in the new framework, ensuring that no student is left behind due to economic barriers. Indeed, the success of this policy review will shape Kenya’s ability to train and retain the skilled workforce it needs for future development.
Disclaimer:
This article is for informational purposes only and does not constitute official policy guidance or financial advice. While every effort has been made to ensure the accuracy and currency of the information provided, education policies and funding frameworks may change over time. Readers are encouraged to consult the Ministry of Education, the Higher Education Loans Board (HELB), or relevant authorities for the latest updates and personalized guidance.
