Poor Planning and Integrity Issues Disrupt University Funding Model

Poor Planning and Integrity Issues Disrupt University Funding Model

The ongoing crisis in university funding has been attributed to the failure to implement a proposed funding model by university vice-chancellors (VCs) and the poor execution of the new model.

Conversations with VCs from both public and private universities, along with government insiders and other higher education stakeholders, have highlighted these issues.

The state has mobilized over 100,000 officers from the National Government Administration Office to assist in verifying the information provided by financial aid applicants nationwide. This move aims to ensure that all eligible individuals receive the funding they are entitled to.

This initiative follows appeals from more than 12,000 students who sought additional funding from the Higher Education Financing. They argued that they had been assigned financial aid bands that did not accurately reflect their financial needs.

Lack of Public Participation

VCs, who requested anonymity, reported that the new funding model was rolled out without sufficient public participation, leaving students and parents uninformed and unprepared.

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According to the ministry, a total of 134,029 students applied for financial aid, with 127,591 applications already sorted into various financial bands.

The government is currently distributing funds to university accounts and students, with the disbursement process expected to be completed by August 30, 2024.

Geoffrey Monari, CEO of the University Fund, reported that over 127,000 loan and scholarship awards had been processed. He mentioned that the evaluation of appeals is underway, with more than 10,000 appeals already addressed by the previous evening.

This indicates a significant interest among Kenyans to ensure correct financial band placement.

Problems with Dropping the Differentiated Unit Cost (DUC)

Another major point of contention was the complete abandonment of the Differentiated Unit Cost (DUC) system, which VCs believe should have been modified for sustainability.

The DUC calculates the annual cost of providing a specific degree program per student, considering staff, facility, and other institutional costs.

Programs were grouped into 18 clusters, with costs ranging from Sh144,000 for humanities to Sh720,000 for dentistry.

Under the new funding formula, universities were given the autonomy to set their course fees, resulting in significant disparities even after a mandated 15% discount.

There are now plans to engage universities to lower program costs and make the model sustainable. Additionally, proposals have been made to involve an independent body to determine the actual cost of programs across universities.

Poor Implementation of Student Banding

VCs criticized the implementation of the stratified student banding system, which categorizes students into five groups based on household income.

Students from homes earning less than Sh5,995 receive the most government funding, while those from homes earning above Sh120,000 receive the least.

VCs argued that the banding process, which lumps students into “poor” and “less needy” categories, was poorly executed and discriminatory. They suggested that a more robust loan facility with clear qualification criteria should have been established instead.

The classification process has also faced integrity issues. Head of Public Service, Felix Koskei, revealed that many students falsely reported low parental incomes to secure more funding.

Government insiders blamed the failure to involve local officials in data collection as a significant oversight.

Education Cabinet Secretary, Julius Migos, announced that school heads, chiefs, and other administrative officers would now be responsible for verifying the information provided by applicants. So far, 12,000 students have appealed their placement in various bands, seeking a review.

Missed Opportunity: The VCs’ Proposal

The current funding challenges could have been avoided if the government had adopted a proposal by the VCs.

The proposal suggested a proportional cost-sharing model between universities, students, and the government, coupled with a loan support plan. Under this plan, student fees would increase from Sh16,000 to Sh24,000, and universities would cover one-sixth of the course cost.

Students would receive loans for another one-sixth, determined by a means testing instrument (MT). The government would then cover the remaining 50-65% of the course cost.

The Education Ministry has instructed universities to admit all students while resolving funding complaints, including opening a channel for appeals.

Despite these measures, there is still uncertainty regarding the reclassification of students and how those from low-income backgrounds will manage their living expenses during this period.

Mr. Monari further noted that most students who requested reclassification have already enrolled in universities without paying fees. The ministry will update universities on appeals and provide information through the HEF portal, accompanied by SMS alerts to students.

Verification and Financial Bands

The Ministry of Education detailed the distribution of students across financial bands:

• Band 1: 21,840 students
• Band 2: 26,920 students
• Band 3: 36,947 students
• Band 4: 28,280 students
• Band 5: Fewer than 10,000 students
• Self-Sponsored: 10,814 students

The government has allocated Sh8 billion in loans and scholarships to support university students. This includes Sh5.2 billion for Higher Education Loans Board (HELB) tuition and upkeep loans and Sh2.8 billion for the Universities Fund scholarships.

Funding Allocation by Band

• Band 1: Government scholarship covers 70%, loan covers 25%, and upkeep loan is Sh60,000.
• Band 2: Government scholarship covers 60%, loan covers 30%, upkeep loan is Sh55,000, and families contribute 10%.
• Band 3: Government scholarship covers 50%, loan covers 30%, upkeep loan is Sh50,000, and families contribute 20%.
• Band 4: Government scholarship covers 40%, loan covers 30%, and students cover the remaining 30%.
• Band 5: Families cover 40% of the fees, with tuition and scholarship capped at 30% each.

Conclusion

These proposals, based on the DUC, were discussed at the First Biennial Universities Funding Conference in Mombasa, attended by top university managers and government officials.

They aligned with recommendations from the Higher Education Loans Board (Helb) and Universities Fund (UF) presented to the Presidential Working Party on Education Reforms. The proposals emphasized that only deserving students should receive state funding, disbursed through a clear and focused criterion.

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Furthermore, the Sessional Paper, Reforming Education and Training for Sustainable Development, suggested that universities reduce their dependence on government funding by diversifying their income sources and using resources more efficiently.

A similar document, Strategies for Funding Staff Compensation in Public Universities in Kenya, was presented to the National Assembly Education Committee in 2019. VCs believe that adopting these earlier proposals would have provided a more sustainable and efficient funding model for universities.

Poor Planning and Integrity Issues Disrupt University Funding Model

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