Ruto Defends New University Funding Model Amid Financial Crisis.
President William Ruto on Tuesday defended the controversial university funding model, which was suspended by the High Court in October.
He attributed the financial challenges in educational institutions to the lack of clarity in financing the education sector.
Ruto emphasized that the government was determined to address the issue and resolve the funding crisis affecting the education of children.
Despite this, the suspension of the funding model has left over 200,000 students and learning institutions in a precarious financial position.
The government had to halt the disbursement of scholarships and loans, following a court order. This has caused a severe ripple effect, leaving students without financial support and universities struggling to sustain operations.
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The stalemate will persist until the case is determined on December 16, prolonging the funding freeze.
Funding Model Overview
The new university funding model, operational since September 2023, currently supports over 200,000 students. A report presented to the National Assembly’s Education Committee indicates that 234,811 students admitted in 2023 and 2024 are beneficiaries.
Specifically, 113,075 students applied for funding in 2023, with applications increasing to 121,736 in 2024.
The University Fund Board’s Chief Executive Officer, Geoffrey Monari, stated that disbursement of funds to universities was discontinued to comply with the court order.
He noted that the suspension has stalled the implementation of the funding model, leaving the government unable to continue disbursements.
The Standard reported that out of Sh13 billion allocated for scholarships, only Sh2.8 billion has been disbursed, leaving universities owed Sh10.2 billion. Similarly, out of the Sh16 billion allocated for student loans this semester, only Sh5 billion has been released, with Sh11 billion still pending.
Funding Bands Breakdown
The model categorizes students into five funding bands:
| Band | Scholarships | Loans | Parent Contribution |
|---|---|---|---|
| Band I | 70% | 25% | 5% |
| Band II | 60% | 30% | 10% |
| Band III | 50% | 30% | 20% |
| Band IV | 40% | 30% | 30% |
| Band V | 30% | 30% | 40% |
The government provides the highest support in Band I, while parents bear increasing costs in subsequent bands, with Band V requiring the largest parental contribution.
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Conclusion
The funding suspension has exacerbated the financial challenges in universities, leaving a gap of billions in unpaid scholarships and loans. With the court decision expected in December, the fate of the funding model and its beneficiaries remains uncertain.
Ruto Defends New University Funding Model Amid Financial Crisis.
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