A new improved draft model on how government will fund students in tertiary institutions is in the works following the scrapping of the previous one by the High Court in December 2024.
A special committee appointed by President William Ruto in September last year has summited its preliminary report that proposes changes to the earlier model introduced in 2023 but which faced challenges before finally being quashed by the court.
Education Cabinet Secretary Julius Ogamba on Tuesday told the Nation that the proposed new model was expected to come into force in September when 2024 Form Four leavers join university and colleges.
One of the key proposals, Mr Ogamba said, is expansion of variables used by the Means Testing Instrument (MTI) to determine students’ level of need based on their household incomes and subsequently place them into various bands.
“The funding model, in operation for two years, has faced challenges, which we acknowledged. A committee was introduced to address these issues and align the model. They have submitted an interim report and are finalising their work,” said Mr Ogamba during an inspection of classrooms in Uthiru area, Kabete Sub-county of Kiambu County.
“Once complete, the changes will be integrated to ensure the model is fit for purpose. Despite the challenges, the model has functioned for two years, and by September, it will be refined and fully operational.”
Later in an exclusive interview with Nation , the CS acknowledged that the MTI may not have been producing accurate results, and therefore the need to expand the variables and definitions to ensure the model aligns closely with individual incomes in order to reduce the margin of error to acceptable scientific levels.
“The MTI might not have produced accurate results, especially when categorising individuals into income bands. We are exploring ways to expand the variables to reduce errors and ensure results align closely with individuals' actual earnings," he said.
“For instance, the MTI was supposed to align students' funding needs as closely as possible to their income levels. We are now exploring ways to expand the variables or definitions to reduce errors and ensure fairness in the categorisation process.”
The CS noted that even as the government works to improve the model, it was also pursuing an application to stay the December ruling pending appeal.
The ruling has affected students in their first and second year of study who have had to report for the second semester without government support.
"The committee is likely to finish its work at the end of this month or early next month. They are currently meeting to address the issues raised by the court and to ensure the model is fit for purpose," the CS said.
He noted that the court ruling, which halted the earlier funding model for new students, has posed challenges since the allocated funds cannot be utilised.
"The judgment did not provide a transition period, leaving us in a difficult position. However, we are working on legal avenues, including seeking a stay and appealing the ruling. Under the Public Finance Management Act, funds for continuing students were already appropriated in the financial year that ended in June 2024. We are legally permitted to disburse these funds," he clarified.
"If students do not receive funding, they face significant hardships, especially those in their final semester. We are seeking legal opinions to resolve this matter swiftly. This model was designed to prevent students from missing school due to financial constraints. We will not allow students to suffer. The government will work tirelessly to find a solution," the CS stated.
The defunct model sparked controversy over fairness in allocation of funds as well as the loan burden on students upon graduation.
On December 20, 2024, the High Court ruled that the model was unconstitutional, citing discrimination and insufficient support for students.
The Court of Appeal has certified as urgent, the government’s appeal seeking to reinstate the model.
The court has directed the trustees of Universities Fund and the Higher Education Loans Board to serve the court documents on other parties involved in the case.
Yesterday, Prof Daniel Mugendi, the chair of the Public Universities Vice Chancellors' Committee, told Nation that running of universities is facing challenges posed by the funding model and the ongoing court case.
“Right now, we're waiting for the court's direction. If this isn't resolved soon, a crisis is inevitable. However, the Universities Fund has released capitation for students outside of the new funding model,” he said.
Regarding student funding, Prof Mugendi explained that universities had filed the necessary documentation for students and that they are attending lectures but warned a prolonged delay in resolving the issues could lead to a crisis.
“We have generally agreed as universities is that for the first and second years, we are not asking them to pay fees for now until the issue is resolved through the courts. Because many of them are not aware of what amount of fees to pay, unless those that own self sponsorship, those that are supporting themselves, then they know that it's not going to change, so as they can as we don't go ahead and pay their fees. But those that are on the government sponsored, then there is that confusion because once the new funding model was declared illegal by the court, then they are not sure of what to pay,” he said.
“We have already received that capitation of the students under the DUC model for the third and fourth and fifth and sixth year students. And that is what is keeping the universities moving for now. And indeed, the government has also released the money that ought to have come to the universities and the students for the first and the second years. This money is with helb and the university funding board waiting for the court direction that they can be able to release the money,” he said.
