Initially, in relation to varsity funding, there was the Differentiated Unit Cost (DUC) Model where the government provided financial support to university students based on cost of specific courses. Then, in September 2023, the government introduced the Variable Scholarship and Loan Funding (VSLF) Model, which currently categorises students into 5 Bands.
In December 2024, the High Court quashed the VSLF Model, ruling that it was unconstitutional, discriminatory and had paucity of public participation. The government decided to take the case to the Court of Appeal, which in turn made a ruling in its favour. Albeit, the Court of Appeal directed the Attorney General, Higher Education Loans Board (HELB) and Kenya Universities and Colleges Central Placement Service (KUCCPS) to publicise the funding framework within 14 days, and establish an appeals mechanism for students who are not satiated.
The aforementioned parties were also instructed to alert all stakeholders — capturing current and incoming students — that VSLF Model may be subject to changes after the final decision. Largely, HELB and trustees of University Fund were directed to inform all students applying for — and the ones receiving funding; that VSLF Model is under legal challenge.
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Actually, lack of an alternative financial system plunged university students into some limbo. No wonder, Court of Appeal allowed students to apply for funding using VSLF Model. Likewise, the ruling also paved way for 2024 KCSE candidates to apply for university placements. Meaning, KUCCPS is preparing to open the portal for online application of degree courses.
So, in VSLF Model, university students are to be funded based on where they fall in various bands. Report of the Presidential Working Party on Education Reform (RPWPER) proposed 4 categories as: Vulnerable, extremely needy, needy and less needy. Consequently, there was a slight review of the VSLF Model through introduction of Bands 1 to 5: Band 1(previously vulnerable), band 2 (previously extremely needy), band 3 (previously needy) and band 4 (previously less needy). Then, band 5 (new category).
In VSLF Model, chiefs and local pastors play a pivotal role in identifying various categories of students through a system known as Means Testing Instrument developed by HELB. Based on VSLF Model, students receive different levels of funding in form of scholarships and loans. Then, there is household contribution. To determine students’ level of need, HELB focuses on: Parental background, gender, course, school type, expenditure on education, family size and composition, marginalisation and Persons Living with Disability (PLWDs).
First Funding Formula
Vulnerable students will get full funding through 82% scholarship from the government, and 18% of HELB loan. Extremely needy will receive 70% scholarship, and 30% HELB loan. Households of students in categories of vulnerable and extremely needy students do not raise even doit amount. The needy are to get 53% scholarship, 40% HELB loan. The less needy to get 38% scholarship, 55% loan. Households of students falling in the categories of needy and less needy to raise 7% of fee.
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As students apply, they should take note. In the VSLF Model, those who opt for private universities are not eligible for scholarships. Moreover, for those who are eligible, the government considers merit, level of need, national priorities and affirmative action.
Reviewed Funding Formula
In the reviewed funding formula, all categories (Band 1-5) are eligible for scholarships and HELB loan. Then, all household will have a certain percentage of fee to raise. Consequently, there is Upkeep Boom for each category. Band 1 (previously vulnerable) will get 70% scholarship, 25% HELB loan, household will pay 5% and the upkeep boom will be Sh 60,000. Band 2 (previously extremely needy) will get 60% scholarship, 30% HELB loan, household will pay 10% and upkeep boom will be Sh 55,000. Band 3 (previously needy) will get 50% scholarship, 30% HELB loan, household will pay 20% and upkeep boom will be Sh 50,000. Band 4 (previously less needy) will get 40% scholarship, 30% HELB loan, household will pay 30% and upkeep boom will be Sh 45,000. Band 5 (new category), will get 30% scholarship, 30% HELB loan, household will pay 40%, and upkeep boom will be Sh 40,000.
The writer guides students on how to make informed career choices. vochieng.90@gmail.com
By Victor Ochieng’
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