- The government replaced the Differentiated Unit Cost formula with the Variable Scholarship and Loan Funding model, grouping students into five bands based on need.
- Categories are determined through HELB’s Means Testing Instrument, which assesses parental background, school type, family size, marginalisation, disability, and other factors.
- Under the revised formula, Band 1 students receive 70% scholarship, 25% loan, and Sh60,000 upkeep, while Band 5 students get 30% scholarship, 30% loan, 40% household contribution, and Sh40,000 upkeep.
Initially, there was the Differentiated Unit Cost (DUC) formula, where the government provided financial support to varsity students based on the cost of specific courses. Then came the new model – Variable Scholarship and Loan Funding (VSLF) formula. Based on the new funding formula, university students should get State funding to bankroll their studies based on banding.
Just to invoke the policy framework pertaining to university funding formula, the Report of the Presidential Working Party on Education Reform (PWPER, 2023) chaired by Prof Raphael Munavu proposed the categories as: Vulnerable, extremely needy, needy and less needy. Then, in the recent past, there was a slight review of the model. In that regard, there was the introduction of 5 categories: Band 1-5. Band 1(previously vulnerable), band 2 (previously extremely needy), band 3 (previously needy) and band 4 (previously less needy). Then, band 5 (new category).
Chiefs and local pastors play a pivotal role in identifying various categories of students through a system known as the Means Testing Instrument (MTI), developed by the Higher Education Loans Board (HELB), which has morphed to the Higher Education Fund (HEF).
Based on the category, students should get different levels of funding in the form of scholarships, loans and household contributions. To determine a student’s level of need, HEF should use certain parameters to ascertain this, which include: Parental background, gender and course, school type, expenditure on education, family size and composition, marginalisation and person living with disability.
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First Funding Formula
Vulnerable students were to get full funding through an 82% scholarship from the government, and 18% of HELB loan. The extremely needy were to get a 70% scholarship and a 30% HELB loan. Households of students in categories of vulnerable and extremely needy students were not expected to raise any amount. The needy were to get 53% scholarship, 40% HELB loan. The less needy were to get 38% scholarship, 55% loan. In that funding formula, households of students falling in the categories of needy and less needy were to raise 7% of the fee.
All students who garner KCSE mean grades of C+ (plus) and above are to apply by first of all holding an ID card and KRA PIN. It is how they become eligible for scholarship consideration. Albeit, as university newbies embark on this important exercise, they should take note that in the new funding formula, students who matriculate into private universities are not eligible for government scholarships. Moreover, for those who are eligible, the government considers merit, level of need, national priorities, and affirmative action when selecting beneficiaries.
Reviewed Funding Formula
In the reviewed funding formula, all categories (Band 1-5) are eligible for scholarships and HELB loans. Then, all households have certain percentages of fees to raise. There is the Upkeep Boom for each category. Band 1 (previously vulnerable) gets a 70% scholarship, a 25% HELB loan, the household pays 5%, and the upkeep boom is Sh 60,000. Band 2 (previously extremely needy) gets a 60% scholarship, a 30% HELB loan, the household pays 10%, and the upkeep boom is Sh 55,000. Band 3 (previously needy) gets a 50% scholarship, a 30% HELB loan, the household pays 20%, and the upkeep boom is Sh 50,000. Band 4 (previously less needy) gets a 40% scholarship, a 30% HELB loan, the household pays 30%, and the upkeep boom is Sh 45,000. Band 5 (new category) gets a 30% scholarship, a 30% HELB loan, the household pays 40%, and the upkeep boom is Sh 40,000.
© Victor Ochieng’
Victor Ochieng’ is a Career Educator. He rolls out career talks and training services in schools. He guides students on how to make informed career choices. vochieng.90@gmail.com. 0704420232
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