Education

1. Overview of New Funding Model-
Variable Scholarship and Loans
Funding Based on Means Testing
Sillas Owiti-Universities Fund
&
Aquillas Omondi-HELB
May 2023

2. 173,127
Students
scored C+
and above
19.9% of
the
869,782
KCSE
candidates
Increasing
enrolment
Declining
DUC
Reforms
in
University
Funding
New
Funding
Model
Implementing
Agencies
University Funding
Board (UFB)
Higher Education
Loans Board
(HELB)
Kenya Universities
and Colleges Central
Placement
(KUCCPS)

3. Accounting for 2022 KCSE Cohort = 869,782 KCSE
candidates
(Degree: A to C+)
(Diploma: C to C-)
(Certificate/Craft: D+ to D)
(Artisan: D- to E)
19.9%
24.5%
33.1%
22.5%

4. Tuition
fees
based
on
Differentiated
Unit
Cost
(DUC)
Current Funding Model
Household contribution
(Vulnerable households apply for
HELB Loan)
GoK Scholarship
(Uniform grant to all students)

5. 69,155
90,759
125,465
142,554
144,520
173,127
2017 2018 2019 2020 2021 2022
Degree Qualified
290,950
2027
Household/HE
LB
GoK
Scholarship
Differentiated
Unit
Cost
(DUC)
Why change….!?
Ksh42
B
Ksh.20
6B

6. Deferment
Crime
Stressed Student
Community
Reputational
Risk
Unethical
activities
Dropouts
Impact of the funding gap

7. The new funding model

8. Reforms on University Funding
CURRENT STATUS NEW STATUS
1
All students placed through KUCCPS are
entitled to government funding as per Section
56 of the Universities Act 2012
Delink Placement and funding of students.
- Placement by KUCCPS based on merit and choice
- Students will be eligible to apply for financial assistance including
Government Scholarships, loans and bursaries.
2
 Uniform Grant based on Differentiated
Unit Cost of programme;
 A graduated scale for loans and bursaries
based on level of need
Means Testing Instrument (MTI) to determine level of funding for
Government Scholarships, loans and bursaries
3.
Funding criteria is Differentiated Unit Cost
(DUC) of the programme
Funding criteria is actual cost of the university programme which varies
from University to University
4.
Cost sharing model is: 80% of DUC by UFB
and 20% of DUC by HELB, Household and
others.
*However, UFB Scholarships funding has
never attained 80% threshold
The new Ratio of funding is as follows:
Actual programme cost
- Govt. Scholarships 61%
- Govt. Loan 36%
- Household 7%
Actual programme
cost

9. …..Reforms on University Funding
CURRENT STATUS NEW STATUS
5. The public is not aware of the funding
component paid by MoE on behalf of
Government.
• Actual programme cost shall be disclosed to the student upon receiving
an admission letter from the respective university;
• Students are eligible to apply centrally for Government Scholarships,
Loans and Bursaries;.
6. Single funding stream of universities through
capitation
Diversified funding streams for universities:
a) Student financing: Scholarships/loans/bursaries
b) Research
c) Capital Infrastructure Grant
d) Services such as Consultancy
7. Block funding to universities (41 votes) Funding to students (Government Scholarship, Loans/Bursaries)

10. Determining need level
Consideration is made on:
 Family economic background
(Poverty Probability Index)
 Affirmative active action
(PWD, Orphan, Marginalized, Gender)
 National development agenda
priorities
Using the HELB MTI introduced in 1995

11. Determining Student Level of Need
• The HELB Means Testing Instrument (MTI) instrument will be applied to
ensure that all Needy students are adequately supported.
• The HELB MTI scores students based on the following 8 parameters:
1) Parent’s background - varied weights will be assigned to whether orphan, single parents, divorced etc.
2) Gender - varied weights will be assigned to whether male or female.
3) Course type - varied weights will be assigned to whether STEAM or Arts.
4) Previous school type - varied weights will be assigned to whether private or public.
5) Expenditure on education - varied weights will be assigned to whether other siblings are in high school/tertiary
institutions.
6) Family size and composition - varied weights will be assigned to no children/ polygamous/monogamous and the age
of the parents.
7) Marginalization - varied weights will be assigned to whether students come from marginalized counties, or the
institution is in those regions.
8) Persons Living with Disability - varied weights will be assigned to any form of disability.

12. Criteria for Funding Students
1. Affirmative action:
a. Marginalized as defined by Commission on Revenue Allocation (CRA).
b. Persons with disability.
2. Household Income Bands: The income bands are classified into the following categories
based on the monthly household income;
a. Vulnerable – Household income - Kshs.0
b. Extremely Needy - Household income of Kshs.23,671 per month and below.
c. Needy - Household monthly income of between Kshs.23,672 and Kshs.70,000.
d. Less Needy - Household monthly income of between Kshs.70,001 – Kshs. 200,000.

13. Vulnerable
Scholarship-82% Tuition
Loan-18% Tuition
Household-0% Tuition
Extremely Needy
Scholarship-70% Tuition
Loan-30% Tuition
Household-0% Tuition
Needy
Scholarship-53% Tuition
Loan-40% Tuition
Household-7% Tuition
Less Needy
Scholarship-38% Tuition
Loan-55% Tuition
Household-7% Tuition
100%
GoK
Financi
ng
100%
GoK
Financi
ng
93%
GoK
Financi
ng
93%
GoK
Financi
ng
New University Funding Model
!Universities to offer 15% discount on actual program cost

14. PROPOSED
MODEL:
CRITERIA
BASED ON
MEANS TESTING
OF THE GRANT
IN LINE WITH
LOAN
The model considers the allocation of categories of Scholarships and Loans to students on the
following basis:
 Funding is based on actual cost of the program.
In 2023/24 FY the following average funding levels are proposed:
 Funding is based on actual cost of the program;
 An average of 61% of the cost of the program shall be a Government Scholarship;
 An average of 36% of the cost of the program shall be Government Loan.
 An average of 7% of the cost of the program shall be Household contribution.
A funding ratio of Scholarships 20% and Loans/Household/Others 80% to be attained
progressively.
FUNDING MODEL
Variable Scholarship and Loans Funding Based on Means Testing

15. Sampled Actual Costs
Variable Government Scholarship Vs. Loan Funding Based on Means Testing Model for
Vulnerable and Extremely Needy Category
PROG. CODE PROGRAMME NAME CLUSTER
Year 1 Cost
in (Kshs.)
2023
PLACE
MENT
VULNERABLE (14%) FUNDED AT
100%
EXTREMELY NEEDY (15%) FUNDED AT
100%
GOVERNMENT
SCHOLARSHIP @ 82%
LOAN 18%
GOVERNEMNT
SCHOLARSHIP
70%
HELB LOAN 30%
1685101 BACHELOR OF ARTS XII 122,400 1 100,368 22,032 85,680 36,720
1685107 BACHELOR OF ACTUARIAL SCIENCE IX 244,800 1 200,736 44,064 171,360 73,440
1685113 BACHELOR OF SCIENCE IN GEOLOGY VIII 275,400 1 225,828 49,572 192,780 82,620
1685115 BACHELOR OF SCIENCE (COMPUTER SCIENCE) IX 306,000 1 250,920 55,080 214,200 91,800
1685120 BACHELOR OF SCIENCE X 224,400 1 184,008 40,392 157,080 67,320
1685133 BACHELOR OF COMMERCE (B.COM) XII 183,600 1 150,552 33,048 128,520 55,080
1685135 BACHELOR OF EDUCATION ARTS XII 183,600 1 150,552 33,048 128,520 55,080
1685136 BACHELOR OF ARTS (CRIMINOLOGY AND SECURITY STUDIES) XIII 153,000 1 125,460 27,540 107,100 45,900
1685137 BACHELOR OF EDUCATION (SCIENCE) IX 244,800 1 200,736 44,064 171,360 73,440
1685180 BACHELOR OF EDUCATION IN EARLY CHILDHOOD EDUCATION XII 183,600 1 150,552 33,048 128,520 55,080
1685181 BACHELOR OF ARTS IN JOURNALISM AND MASS COMMUNICATION XI 204,000 1 167,280 36,720 142,800 61,200
1685200 BACHELOR OF SCIENCE (ECONOMICS AND STATISTICS) XII 244,800 1 200,736 44,064 171,360 73,440
1685233 BACHELOR OF SCIENCE IN INFORMATION SCIENCE XI 204,000 1 167,280 36,720 142,800 61,200
1685237 BACHELOR OF ARTS (PSYCHOLOGY) XIII 153,000 1 125,460 27,540 107,100 45,900
1685239 BACHELOR OF SCIENCE (COMMUNITY DEVELOPMENT) XIII 153,000 1 125,460 27,540 107,100 45,900
1685244 BACHELOR OF BUSINESS INFORMATION TECHNOLOGY XI 204,000 1 167,280 36,720 142,800 61,200
1685250 BACHELOR OF PROCUREMENT AND LOGISTICS MANAGEMENT XII 183,600 1 150,552 33,048 128,520 55,080
1685257 BACHELOR OF AGRIBUSINESS MANAGEMENT XI 204,000 1 167,280 36,720 142,800 61,200
1685293 BACHELOR OF SCIENCE IN ANIMAL SCIENCE VIII 275,400 1 225,828 49,572 192,780 82,620
1685298 BACHELOR OF ENTREPRENEURSHIP AND ENTERPRISE MANAGEMENT XII 183,600 1 150,552 33,048 128,520 55,080
1685348 BACHELOR OF SCIENCE (MINERAL EXPLORATION TECHNOLOGY AND MINING) VIII 275,400 1
225,828 49,572 192,780 82,620
1685387 BACHELOR OF HOTEL MANAGEMENT XI 204,000 1 167,280 36,720 142,800 61,200
1685388 BACHELOR OF SCIENCE (APPLIED COMPUTER SCIENCE) IX 244,800 1 200,736 44,064 171,360 73,440
1685417 BACHELOR OF SCIENCE (AGRICULTURE EDUCATION & EXTENSION) XI 244,800 1 200,736 44,064 171,360 73,440
1685510 BACHELOR OF CO-OPERATIVE MANAGEMENT XII 183,600 1 150,552 33,048 128,520 55,080
1685681 BACHELOR OF SCIENCE (HEALTH RECORDS AND INFORMATION MANAGEMENT) XI 183,600 1
150,552 33,048 128,520 55,080
1685654 BACHELOR OF SCIENCE IN ACCOUNTING IX 183,600 1 150,552 33,048 128,520 55,080

16. Sampled Actual Costs
Variable Government Scholarship Vs. Loan Funding Based on Means Testing Model for Needy
Category
PROG. CODE PROGRAMME NAME CLUSTER
Year 1 Cost in
Kshs.
2023
PLACE
MENT
NEEDY (17%) FUNDED AT 53%
GOVERNMNT
SCHOLARSHIP
53%
HELB LOAN 40%
TOTAL
HOUSEHOLD
CONTRIBUTIO
N 7%
1685101 BACHELOR OF ARTS XII 122,400 1 64,872 48,960 8,568
1685107 BACHELOR OF ACTUARIAL SCIENCE IX 244,800 1 129,744 97,920 17,136
1685113 BACHELOR OF SCIENCE IN GEOLOGY VIII 275,400 1 145,962 110,160 19,278
1685115 BACHELOR OF SCIENCE (COMPUTER SCIENCE) IX 306,000 1 162,180 122,400 21,420
1685120 BACHELOR OF SCIENCE X 224,400 1 118,932 89,760 15,708
1685133 BACHELOR OF COMMERCE (B.COM) XII 183,600 1 97,308 73,440 12,852
1685135 BACHELOR OF EDUCATION ARTS XII 183,600 1 97,308 73,440 12,852
1685136 BACHELOR OF ARTS (CRIMINOLOGY AND SECURITY STUDIES) XIII 153,000 1 81,090 61,200 10,710
1685137 BACHELOR OF EDUCATION (SCIENCE) IX 244,800 1 129,744 97,920 17,136
1685180 BACHELOR OF EDUCATION IN EARLY CHILDHOOD EDUCATION XII 183,600 1 97,308 73,440 12,852
1685181 BACHELOR OF ARTS IN JOURNALISM AND MASS COMMUNICATION XI 204,000 1 108,120 81,600 14,280
1685200 BACHELOR OF SCIENCE (ECONOMICS AND STATISTICS) XII 244,800 1 129,744 97,920 17,136
1685233 BACHELOR OF SCIENCE IN INFORMATION SCIENCE XI 204,000 1 108,120 81,600 14,280
1685237 BACHELOR OF ARTS (PSYCHOLOGY) XIII 153,000 1 81,090 61,200 10,710
1685239 BACHELOR OF SCIENCE (COMMUNITY DEVELOPMENT) XIII 153,000 1 81,090 61,200 10,710
1685244 BACHELOR OF BUSINESS INFORMATION TECHNOLOGY XI 204,000 1 108,120 81,600 14,280
1685250 BACHELOR OF PROCUREMENT AND LOGISTICS MANAGEMENT XII 183,600 1 97,308 73,440 12,852
1685257 BACHELOR OF AGRIBUSINESS MANAGEMENT XI 204,000 1 108,120 81,600 14,280
1685293 BACHELOR OF SCIENCE IN ANIMAL SCIENCE VIII 275,400 1 145,962 110,160 19,278
1685298 BACHELOR OF ENTREPRENEURSHIP AND ENTERPRISE MANAGEMENT XII 183,600 1 97,308 73,440 12,852
1685348 BACHELOR OF SCIENCE (MINERAL EXPLORATION TECHNOLOGY AND MINING) VIII 275,400 1 145,962 110,160 19,278
1685387 BACHELOR OF HOTEL MANAGEMENT XI 204,000 1 108,120 81,600 14,280
1685388 BACHELOR OF SCIENCE (APPLIED COMPUTER SCIENCE) IX 244,800 1 129,744 97,920 17,136
1685417 BACHELOR OF SCIENCE (AGRICULTURE EDUCATION & EXTENSION) XI 244,800 1 129,744 97,920 17,136
1685510 BACHELOR OF CO-OPERATIVE MANAGEMENT XII 183,600 1 97,308 73,440 12,852
1685681 BACHELOR OF SCIENCE (HEALTH RECORDS AND INFORMATION MANAGEMENT) XI 183,600 1 97,308 73,440 12,852
1685654 BACHELOR OF SCIENCE IN ACCOUNTING IX 183,600 1 97,308 73,440 12,852

17. Sampled Actual Costs
Variable Government Scholarship Vs. Loan Funding Based on Means Testing Model for Less
Needy Category
PROG. CODE PROGRAMME NAME CLUSTER
Year 1 Cost in
Kshs.
2023
PLACEMENT
LESS NEEDY (54%) FUNDED AT 38%
GOVERNEMENT
SCHOLARSHIP
38%
HELB LOAN
55%
TOTAL
HOUSEHOLD
CONTRIBUTIO
N 7%
1685101 BACHELOR OF ARTS XII 122,400 1 46,512 67,320 8,568
1685107 BACHELOR OF ACTUARIAL SCIENCE IX 244,800 1 93,024 134,640 17,136
1685113 BACHELOR OF SCIENCE IN GEOLOGY VIII 275,400 1 104,652 151,470 19,278
1685115 BACHELOR OF SCIENCE (COMPUTER SCIENCE) IX 306,000 1 116,280 168,300 21,420
1685120 BACHELOR OF SCIENCE X 224,400 1 85,272 123,420 15,708
1685133 BACHELOR OF COMMERCE (B.COM) XII 183,600 1 69,768 100,980 12,852
1685135 BACHELOR OF EDUCATION ARTS XII 183,600 1 69,768 100,980 12,852
1685136 BACHELOR OF ARTS (CRIMINOLOGY AND SECURITY STUDIES) XIII 153,000 1 58,140 84,150 10,710
1685137 BACHELOR OF EDUCATION (SCIENCE) IX 244,800 1 93,024 134,640 17,136
1685180 BACHELOR OF EDUCATION IN EARLY CHILDHOOD EDUCATION XII 183,600 1 69,768 100,980 12,852
1685181 BACHELOR OF ARTS IN JOURNALISM AND MASS COMMUNICATION XI 204,000 1 77,520 112,200 14,280
1685200 BACHELOR OF SCIENCE (ECONOMICS AND STATISTICS) XII 244,800 1 93,024 134,640 17,136
1685233 BACHELOR OF SCIENCE IN INFORMATION SCIENCE XI 204,000 1 77,520 112,200 14,280
1685237 BACHELOR OF ARTS (PSYCHOLOGY) XIII 153,000 1 58,140 84,150 10,710
1685239 BACHELOR OF SCIENCE (COMMUNITY DEVELOPMENT) XIII 153,000 1 58,140 84,150 10,710
1685244 BACHELOR OF BUSINESS INFORMATION TECHNOLOGY XI 204,000 1 77,520 112,200 14,280
1685250 BACHELOR OF PROCUREMENT AND LOGISTICS MANAGEMENT XII 183,600 1 69,768 100,980 12,852
1685257 BACHELOR OF AGRIBUSINESS MANAGEMENT XI 204,000 1 77,520 112,200 14,280
1685293 BACHELOR OF SCIENCE IN ANIMAL SCIENCE VIII 275,400 1 104,652 151,470 19,278
1685298 BACHELOR OF ENTREPRENEURSHIP AND ENTERPRISE MANAGEMENT XII 183,600 1 69,768 100,980 12,852
1685348 BACHELOR OF SCIENCE (MINERAL EXPLORATION TECHNOLOGY AND MINING) VIII 275,400 1 104,652 151,470 19,278
1685387 BACHELOR OF HOTEL MANAGEMENT XI 204,000 1 77,520 112,200 14,280
1685388 BACHELOR OF SCIENCE (APPLIED COMPUTER SCIENCE) IX 244,800 1 93,024 134,640 17,136
1685417 BACHELOR OF SCIENCE (AGRICULTURE EDUCATION & EXTENSION) XI 244,800 1 93,024 134,640 17,136
1685510 BACHELOR OF CO-OPERATIVE MANAGEMENT XII 183,600 1 69,768 100,980 12,852
1685681 BACHELOR OF SCIENCE (HEALTH RECORDS AND INFORMATION MANAGEMENT) XI 183,600 1 69,768 100,980 12,852
1685654 BACHELOR OF SCIENCE IN ACCOUNTING IX 183,600 1 69,768 100,980 12,852

18. Benefits of the Model
1. Promotes equity-
funding of students
whether Scholarships,
loans or bursaries will be
based on the level of need.
2. Increased cashflow to
universities by
Kshs.20.3Billion.
3. All students who
qualified for university
intake (C+ and above) will
be placed and will be
eligible for funding.
4. Enhances inclusivity,
every student will be
eligible for financial
assistance.
5. Universities will be
motivated to raise
additional resources and to
enhance the quality of
education so as to attract
more students.

19. Summary
1. Introduction of student-centered funding based on the actual programme cost
2. Delinking of Placement and funding of students.
3. Placement of KCSE 2022 candidates to Universities by KUCCPS based on performance and
choice.
4. Students will be eligible to apply for financial assistance including Government Scholarships,
Loans and Bursaries.
5. Admission/Reporting of government-sponsored students harmonized to start in
August/September for uniformity and alignment to the Government Financial Year.
7. The university funding policy and framework to be reviewed to determine fees for different
categories of students: Government sponsored, Privately sponsored, and Foreign students;
8.Review the model will be periodically to take care of inflation

20. Opening of KUCCPS
portal & Placement
Funding Requests
Registration &
Applications for
Scholarships & Loans
Disbursements
Fund disbursement
to students/HLI
Implementation plan
MAY-JULY JULY-SEP SEPTEMBER
Placement

21. Other Reforms
•Independence of Universities
•Data Reforms
•Shared Resources
•Diversify revenue streams
•Investments e.g. Technology and CAPEX(PPP)
•Cost Management Measures e.g. Sustainable energy
•Increase Productivity ; Performance based funding