New higher ed funding model not perfect either

By , June 26, 2024

The approach to funding higher education in Kenya has shifted notably from a predominantly government-subsidised model to one driven by market dynamics and cost-sharing.

Initially, the higher education system relied heavily on government subsidies, with public universities receiving substantial funding covering operational costs, faculty salaries and more. HELB provided low-cost student loans, irrespective of a student’s financial situation.

However, Kenya has adopted a new funding paradigm characterised by differentiated unit costs, merit-based scholarships, and increased reliance on income-contingent loans. This transition aims to allocate funding based on the specific costs associated with different programmes. Nevertheless, it has led to higher tuition fees, deviating from the egalitarian principle of equal access to education.

While the previous funding model was better aligned with those values, the new approach presents challenges to maintaining fairness. Soaring tuition fees and heightened dependence on loans create financial hurdles for low-income students. Although merit-based scholarships offer some relief, they may not adequately address the broader needs of disadvantaged students lacking access to quality pre-university education and other resources.

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