President William Ruto has launched a new funding model for Technical and Vocational Education Training (TVET) institutions and universities in Kenya. The model, which was unveiled on Wednesday May 3rd, 2023 at the State House in Nairobi, aims to increase access and equity in tertiary education, as well as improve quality and relevance of the programmes offered.

According to the new model, tertiary institutions will no longer receive block funding in the form of capitation based on Differentiated Unit Cost to students. Instead, the funding will be provided through combined scholarships, loans, and household contributions on a graduated scale determined by a Means Testing Instrument (MTI).

The MTI is a tool that assesses the socio-economic status of students and their families, and assigns them to one of four levels of needs: vulnerable, extremely needy, needy, and less needy. The level of need determines the amount and type of funding that each student will receive from the government and other sources.

The vulnerable and extremely needy students will be fully funded by the government through scholarships, loans, and bursaries. These students will not be required to pay any fees or repay any loans. They will also receive stipends for living expenses and learning materials.

Needy students joining universities will receive government scholarships of up to a maximum of 53%, and loans of up to 40%, with their households only paying for 7% of the cost of their education. Needy students joining TVETs will receive government scholarships of up to a maximum of 50%, loans of up to 30%, and their households will pay 20% of the costs.

Less needy students will be funded through a government scholarship of up to a maximum of 38% of the cost of the programme and 55% in loans. Their households will pay the remaining 7%. For TVETs, less needy students will be funded 32% for government scholarship, 48% for loans, and their households will pay 20% of the costs.

The new funding model also requires that universities and TVETs declare and make public the cost of their programmes and ensure no additional levies or fee increases without consultation with the relevant stakeholders. The cost of each programme will be based on the actual inputs required for its delivery, such as staff salaries, equipment, utilities, maintenance, and accreditation.

President Ruto said that the new funding model was a result of extensive consultations with various stakeholders, including students, parents, teachers, employers, development partners, civil society, and religious leaders. He said that the model was designed to address the challenges faced by TVETs and universities, including the reduction in funding per trainee and the increase in enrolment.

 He said that the model would also enhance accountability and transparency in the use of public funds for tertiary education, as well as promote innovation and competitiveness among institutions. He urged all stakeholders to support the implementation of the new model and ensure its success.