Over 70,000 Students at Risk of Missing Scholarships and Loans
Over 70,000 students who are set to join universities this year may miss out on government scholarships due to a funding shortfall.
The Ministry of Education has yet to receive the necessary funds to support all eligible students under the new funding model.
The estimates presented to Parliament indicate that higher education funding faces a significant financial deficit of Ksh.48 billion.
This shortfall impacts scholarships, grants, and loans for students, potentially leaving many without the financial support they need.
The Ministry of Education requires a total of Ksh.130 billion for the current financial year to cover scholarships, grants, and loans.
However, it has only been allocated Ksh.84.5 billion, resulting in a funding gap of Ksh.48.7 billion.
“We have projected the number of students who qualified for funding to be 153,000 but are projecting 122,000 will require funding,” Higher Education and Research PS Beatrice Inyangala said.
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According to documents tabled in Parliament by the State Department of Higher Education and Research, this funding gap affects both new and continuing students. The shortfall means that only a fraction of eligible students will receive the financial aid they need.
Funding Breakdown
The higher education funding bodies reported that as of June this year, a total of 128,000 students had applied for funding, with the number expected to rise further. Unfortunately, only 32% of these students will receive loans.
Ministry documents reveal that the total cost of scholarships for the entire 2023 KCSE cohort is Ksh.12.45 billion. However, the government has only allocated Ksh.4.28 billion, which is sufficient to support only 48,800 students. This leaves 73,700 students without scholarships.
| Funding Component | Required (Ksh.) | Allocated (Ksh.) | Funding Gap (Ksh.) |
|---|---|---|---|
| Total Scholarships | 12.45 billion | 4.28 billion | 8.17 billion |
| Student Loans | 13.76 billion | 1.39 billion | 12.37 billion |
| Government-Sponsored Private University Students | 1.6 billion | 574.8 million | 1.025 billion |
Impact on Students
Higher Education and Research Principal Secretary Beatrice Inyangala shared that the ministry has projected 153,000 students to qualify for funding, but only 122,000 are expected to require it.
She explained that they currently have enough resources to cover students from the first to the fourth year through the first semester.
Despite this assurance, the cash crunch is expected to severely affect both new and continuing students, especially those attending private universities under government sponsorship.
Out of 67,600 potential beneficiaries, only 6,500 students will benefit from the Ksh.574.8 million allocated to them, against a required Ksh.1.6 billion. This leaves 61,000 students financially exposed and unable to meet their educational expenses.
Government’s Stance
Despite the challenges, the government remains optimistic that students will access the necessary funding in time to report to university.
Beatrice Inyangala expressed confidence that as more income is collected, the budget for loans and scholarships will be enhanced.
She emphasized that the new funding model has made higher education more affordable, with households expected to pay only 7% of the course cost.
In addition to funding challenges, some students, particularly those from rural areas, have reported difficulties in accessing the internet and huduma centres to apply for funding.
These accessibility issues further exacerbate the financial challenges faced by students, making it difficult for them to secure the necessary resources to pursue higher education.
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In summary, the current funding shortfall poses a significant challenge to Kenya’s higher education system,
potentially leaving thousands of students without the financial support they need. While the government is working to address these issues, the gap between required and allocated funds highlights the need for urgent action to ensure that all eligible students receive the support they deserve.
Over 70,000 Students at Risk of Missing Scholarships and Loans
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