Crisis in Ruto's New Higher Education Funding Model

Nairobi, 

Friday, 17 January, 2025 

McCreadie Andias 

Kenya’s new higher education funding model, introduced with the aim of promoting equity and sustainability, is now under scrutiny for widening the gap in access to education. 

With mounting evidence of its failures, critics argue that the policy is doing more harm than good. From declining enrollment to financial strain on institutions, the policy has sparked outrage among students, parents, and education stakeholders.

In December last year, The High Court nullified the government’s new university education funding model, declaring it unconstitutional and discriminatory.

Justice Chacha Mwita ruled that the model violated students’ legitimate expectations and was implemented without adequate public participation, despite its significant impact on higher education.

“The government has a constitutional responsibility to fund public universities. Passing this burden onto parents is a violation of the Constitution,” said Mwita.

He added that the model should have undergone public consultation to incorporate citizens’ views before implementation.

“The changes in the funding model did not adhere to the necessary legal provisions in its creation,” he noted.

The court directed the Education Cabinet Secretary, Attorney General, Higher Education Loans Board, and other stakeholders to cease implementing the model.

The ruling follows a petition filed on October 13, 2023, by the Kenya Human Rights Commission (KHRC), Elimu Bora Working Group, Boaz Waruku, and a Students Caucus. The petitioners argued that the new model locks thousands of students out of higher education, making it discriminatory and a breach of the right to education.

The model, dubbed the Variable Scholarship and Loan Funding (VSLF), was launched by President William Ruto in May 2023. It categorized students into five bands, with those from vulnerable and extremely needy households eligible for full funding, while less needy students could receive up to 90% funding.

Since its inception, One of the most alarming outcomes of the new funding model is the notable decline in university enrollment. Data reveals that over 19,572 students did not take up their university placements last year, a trend attributed to the inefficiencies of the new financing system. 

Lawmakers have expressed concerns that the model's complexity and lack of clarity regarding fees have deterred students from pursuing higher education. 

National Assembly Committee on Education Chairman Julius Melly highlighted that many parents were "shocked to see the fee structure and asked their children to choose something else." 

Under the five bands based on household income which determine the level of government support. The model, which aims to prioritize the most vulnerable through the Means Testing Instrument (MTI) used for classification, has faced criticism for its inaccuracy. 

Instances of students from needy backgrounds being misclassified have been reported, leading to insufficient financial aid. Kabondo Kasipul MP, Eve Akinyi Obara, noted that university administrators have questioned the MTI's effectiveness, stating that "the MTI isn’t watertight." 

Mary Wanjiru, a bright 19-year-old from Nyeri County, scored an impressive A- in her KCSE and secured a spot at the University of Nairobi to pursue medicine. Her dream, however, quickly turned into a nightmare. Classified under the "low need" band by the Means Testing Instrument (MTI), Mary was ineligible for adequate government funding, despite her family's struggles.

"My father is a casual laborer, and my mother sells vegetables in the market," Mary explains. "We barely make enough to eat, yet I was told I qualify for only 20% funding. My parents can't afford the rest." 

Her father, James Wanjiru, adds, "This system doesn’t understand the realities of people like us. Mary might have to defer her studies because we simply cannot raise the required fees."

Kevin Otieno from Kisumu County was admitted to Jomo Kenyatta University of Agriculture and Technology to study engineering. Despite being a top-performing student in his school, Kevin chose to forgo his placement. "I had no choice," Kevin shares. 

"The fee structure was overwhelming, and the funding allocation didn’t cover enough. My parents told me to enroll in a technical college instead because it was more affordable."

Students have voiced frustration with the new funding model, particularly the lack of transparency and fairness in the MTI. 

"This model doesn’t account for hidden struggles," says Jane Mwikali, a second-year student at Kenyatta University. "I was categorized as 'middle need,' but my parents lost their jobs last year. The system doesn’t adapt to such changes."

"The government promised free or affordable education, but this feels like a betrayal," says David Ouma, a parent from Kakamega County. "We want a system that listens to us and understands our situations."

Dr. Lucy Maina, an education policy analyst, points out systemic flaws in the funding model. "The MTI is overly simplistic and relies on outdated data that fails to capture the complexities of poverty in Kenya. Many families that should qualify for full funding are left out," she says.

Prof. Peter Omondi, an education economist, adds that the model was implemented hastily. "There was little stakeholder consultation, and the rollout lacked proper piloting. Such a policy requires a phased approach to identify gaps before nationwide implementation."

Public universities are facing unprecedented financial challenges under the new model. The State Department for Higher Education and Research experienced a 60% budget cut in the 2023-24 financial year, receiving only Sh94 billion out of the Sh159.6 billion requested. 

This reduction has left institutions struggling to maintain operations, pay staff, and provide quality education. The University Academic Staff Union (UASU) has even threatened to re-launch its strikes due to unmet collective bargaining agreements, further destabilizing the sector. 

Why the Model is Failing

There has been huge Overreliance on the Means Testing Instrument (MTI)which has been criticized for being inaccurate and rigid. It uses limited criteria to categorize students, ignoring fluctuating household incomes, regional disparities, and other socio-economic challenges.

With public universities already reeling from a 60% budget cut in the 2023-24 financial year, the new model has worsened their financial woes. Many institutions are unable to meet their operational costs, leading to threats of strikes by staff and reduced quality of education.

Furthermore, The model places a heavier financial burden on families, particularly those categorized as "low need" or "middle need." With a majority of Kenyans living below the poverty line, many are unable to bridge the gap between government funding and the actual cost of education.

There has also been Lack of Public Awareness and Support Systems where Many parents and students were unprepared for the sudden shift. The lack of public awareness campaigns and support systems has led to widespread confusion and disenfranchisement.

Critics also argue that the policy disproportionately benefits wealthier families who can easily supplement the funding gaps. This has led to a growing perception that the system favors the privileged at the expense of the vulnerable.

Dr. Julius Otieno, Education Researcher says;"The intention to target the most vulnerable is noble," says Dr. Otieno, "but the execution is deeply flawed. The government underestimated the administrative complexities and failed to consider the lived realities of Kenyan families."

In a televised interview, Hon. John Mwangi, MP for Nakuru North said;"The model was rolled out in a rush, without considering the feedback of key stakeholders like parents, students, and university administrators. We need a full review before it completely derails our higher education system."

Despite mounting criticisms, the government defends the new funding model as a necessary reform to address systemic issues in higher education financing. President William Ruto asserted that the model "gives priority to the most vulnerable students, offering them up to 95 per cent government support while also pulling our universities back from the brink of collapse." 

However, stakeholders argue that the model was hastily implemented without adequate consultation, leading to confusion and disparities in funding allocations. The opposition Azimio La Umoja One Kenya Coalition has called for its scrapping, stating it favors students from wealthier backgrounds. 

For Mary, Kevin, and thousands of others, the promise of higher education hangs in the balance. It is now up to the government to fulfill its commitment to making higher education accessible and equitable for all Kenyans.