There have been radical changes in the education sector ever since the new administration came into office. Of very much significance has been the decision to domicile Junior Secondary learners in their respective existing primary schools. Whether that was the right call or not remains a subject of debate. As we were still digesting the JSS strife, came a new kid on the block; the new funding model for tertiary institutions.
Nothing has been as dividing as the model which is a sharp departure from the current model. For starters, university education has been funded almost entirely for students admitted through the Kenya Universities and Colleges Central Placement Services (KUCCPS) which was formerly known as the Joint Admission Board (JAB). Under the model, the government has been footing arguably the whole fees, leaving only Ksh 18000 tuition fees p.a for households to take care of, regardless of the course the student is admitted to. The same students have been allowed to apply for Helb loans. For years now, Helb has been awarding at least 40k for every successful applicant. This means that a government sponsored student at university level literally pays nothing in school fees every year. He only remains with accommodation and upkeep to worry for, a portion of which is paid for by helb balance. For most households, the model was sustainable but the government thinks otherwise hence the roll out of the new model which is set to take effect in the 2023/24 academic calendar.
The proponents of the new funding model have argued that while the current model was convinient for most students, it was suffocating most of the public varsities. Some are on the brink of collapse if the model was maintained. But was the model entirely to be blamed for the financial quagmire?
As much as, it has its downside, the model has not failed spectacularly by itself. There can be a myriad reasons but chief among can be traced back to the government. Public universities have cried foul on most occasions because government has not dutifully disbursed capitation to the varsities. This has plunged many into debt hole as they have been unable to pay suppliers, part time lecturers and running recurrent operations. Some varsities' management can also bear a portion of the blame due to runaway misappropriation of funds meant to run the institutions of higher learning. These reasons compounded with the ever rising inflation rates has made taken the situation out of hand. The new model is primarily meant to address the cash crunch in varsities. But is this not running away from a self-inflicted problem and shifting it to the innocents? Before making a conclusion let's how the new model works.
Under the new model, student financing will be pegged on the course the student is undertaking and the financial ability of the household a student comes from. Students will be grouped into four broad categories; the vulnerable, extremely needy, needy and the less needy. Out of over 170,000 students who qualified for university courses, only 40,000 will qualify for up to 93% of tuition fees scholarships. The remaining 7% will be acquired through loans and bursaries. These beneficiaries will be categorised as extremely needy and vulnerable. This means this population may not pay penny in tuition fees! And what happens for the rest of the qualifying population?
The government says there is no cause for alarm, as most households will only pay 7% of the total tuition fees regardless of the course and heavy tuition fees attached to them. 7% seems very little but where is the catch? In the new model, categorisation will mean more student loan debt especially for those deemed as needy and less needy. Let's take a case scenario.
A needy student who qualifies for Bachelor of Medicine and Surgery at Kenyatta will be needed pay ksh 612,000 per year in tuition fees! Let's assume he successfully applies for government scholarships and loans. He will be granted upto 53% in scholarships which translates to ksh 324,360 on the highside. Note he can get less than that amount as 53% is the maximum. He will proceed to apply for helb loans. Helb can only award up to 40% of the fees which translates to ksh 244,800. Again he can get less than that since helb is not obligated to award the whole 40%! The remaining amount which is 42,840 (7%) will be footed by the student's household.
Going by this case scenario, the student will accumulate almost 1.5 million in helb loans! This is an outrageous amount by all standards. Compared to the old model, the student will have a heavier debt burden. In the old model he was to pay only 360k assuming he was awarded the maximum 60k per year in the course of the six years in school.
There's scanty information on the effectiveness of tools the government will employ to determine the category in which a learner will fall. Some of the tools the government is going to rely on is data from KRA, NHIF, KNBS etc but how objective will this data be? There are genuine reasons to worry despite the assurances. Many who will definitely fall in the needy and less needy categories will fork out colossal amounts in fees alone.
It's instructive to note that scholarships and loans are not automatic. Students will have to apply every year. Those students without national IDs will be eligible for loans. Students who choose to apply for courses in private universities will not enjoy government scholarships. However they are free to apply for helb loans. The new model only affects the new cohort joining in September, the continuing students will continue to work with the old model.
Depending on who you ask, the new model is live-saver for some and ticking time bomb for others. What do you think of the new model?
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