President Ruto releases new funding model for TVETs, varsities

President William Ruto has just launched a new funding model that is aimed at solving challenges faced by Technical and Vocational Education Training (TVET) institutions and universities across the country.

In a speech that he read on Wednesday evening, Ruto disclosed that tertiary institutions will no longer receive block funding in form of capitation based on a Differentiated Unit Cost to students but rather in combined scholarships, loans and household contributions on a graduated scale, scientifically determined by a Means Testing Instrument (MTI).

The president further said that students will be categorized according to four levels of needs, that is; vulnerable, extremely needy, needy and less needy.

“The challenge in TVET institutions as been the increase in enrolment, leading to a reduction in funding per trainee (capitation grant) over the years, from KSh30,000 to as low as Ksh 17,000 a year,” the president said in his speech.

In consideration of equitable distribution of funds, Ruto said all students will receive adequate support to meet the cost oft programmes they choose to pursue.

“The government shall fully fund the vulnerable and extremely needy students who comprise 29% of the students joining university and TVET’s this year. The funding shall be through government scholarships, loans and bursaries.

“Students from needy households joining universities will receive government scholarships of up to a maximum of 53 per cent and loans of up to 40%. Their Households will only pay for 7% of the cost of their University Education. Those joining TVETS will receive government scholarships up to a maximum of 50% and 30% In loans. Their Households will pay 20% of the costs,” he said.

He further adds: “The less needy students joining university are to be funded through a government scholarship of up to a maximum of 38% of the cost of the programme, and 55% per cent in form of loans. Their households will pay only 7%. For those joining TVETS, they will be funded 32% for government scholarship, 48% for loans and their households will pay 20% of the costs.”

Ruto therefore asked universities and TVET institutions to declare and make public the cost of their programmes and ensure that there are no additional levies or increase in fees without consultation.

Recently, PS for TVETs, Dr. Esther Muoria had hinted that the government was looking into a new funding model for tertiary institutions and a body to manage TVETs was also being formulated.

By Allan Kibet

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