Sh59 billion shortfall casts shadow over university, TVET education

Universities and technical and vocational education training institutions (TVETs) are staring at a funding deficit of Sh58.8 billion in the financial year ending June 2025, raising concerns over students' welfare and the quality of education.

Data from the Ministry of Education shows that only Sh86.83 billion has been allocated for scholarships, loans, and capitation, against a required Sh145.54 billion.

"This resource gap is a clear indication that learners at various levels are not funded as expected based on existing policies on funding," the Parliamentary Budget Office notes in a review of the ministry's data.

"This may in the long run affect the quality of education being delivered in our learning institutions hence negatively affecting the education outcomes," it reads further.

The shortfall raises fears over the future of hundreds of thousands of students, especially those struggling to meet their upkeep costs and facing rising fee arrears.

Protests erupted last year as students decried challenges posed by the new funding model, which has led to increased uncertainties for new and continuing learners.

Under the old Differentiated Unit Cost (DUC) model, capitation for continuing students faces the biggest deficit, with only Sh26.1 billion allocated against a requirement of Sh59.3 billion.

Meanwhile, loans under the new funding model have been allocated Sh35.9 billion, falling short of the needed Sh47.3 billion.

Needs-based model

University students under the new needs-based model have been allocated Sh16.9 billion in scholarships against a requirement of Sh22.3 billion.

TVET students are also affected, with only Sh2.5 billion available for scholarships, leaving a Sh5.3 billion gap.

Additionally, the capitation for TVET students has been set at Sh5.2 billion, against a requirement of Sh8.83 billion.

The government introduced a needs-based funding model in 2023 to replace the DUC system, which was blamed for straining public resources by subsidizing students from well-off families.

The model categorizes students into four groups: vulnerable, extremely needy, needy, and less needy.

However, concerns have emerged over its implementation, with reports that some students have been wrongly classified, compounding their financial struggles.

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• Education
• New Higher Funding Model
• Higher Education Funding model
• University funding model
• Sh59 billion shortfall casts shadow over university
• TVET education

The DUC model, which allocated funds based on the number of students admitted and their courses provided a more predictable funding structure. Now, with the deficit widening, the fate of many students hangs in the balance.