Education CS Ogamba on Wednesday had a difficult time defending the MTI system, which uses data to classify students into different categories for financial aid.

One of the most critical findings concerns the University of Nairobi, where the Auditor General expressed doubt about the institution's continued survival.

The student leaders have now issued the government a 30-day notice to address their concerns, including the abolition of Bands 4 and 5,

President Ruto explained that the old model assumed the government could pay 80 per cent of fees for all students which was not the case.

The VCs they said the new model has saved the institutions that have been grappling with massive financial challenges from collapsing.

Ruto was clear that no student should be pressured to repay their loans until they secure employment.

Ruto said that in the new model, students living with disability will be paying only 5 per cent of the college fees as opposed to 25 per cent that such students paid in the older model.

Ruto said that those who appealed will get their feedback after two weeks after the process has concluded.

The President added that he has only added one band to the existing four, to make them five.

The debate comes amid complaints that some students have been placed in incorrect funding bands, jeopardising their chances of pursuing higher education.

The funds, part of a larger Sh40 billion allocation across various ministries, include Sh1.6 billion for free primary education, Sh14.1 billion for free day secondary education, and Sh6.1 billion for junior secondary schools.

Vice-Chancellors have also been directed to facilitate suitable accommodation arrangements for first-year students, with the guarantee that the necessary fees will be paid upon disbursement of the upkeep component.

Universities have been directed to ensure new admission letters reach all first-year students by Monday, August 19, 2024.

Under the New Funding Model, government funding will be allocated based on individual student needs.