Auditor General Nancy Gathungu has cast doubt on the effectiveness of Kenya’s new university funding model, revealing that despite its student-centred promise, the system is riddled with critical shortcomings.
Launched with the goal of making higher education more equitable, accessible, and financially sustainable, the model relies on the Means Testing Instrument (MTI) to assess a student’s financial standing. The MTI ranks students into five financial bands, from the most vulnerable to the least in need. Based on these categories, learners receive a mix of government scholarships, Higher Education Loans Board (HELB) loans, and expected household contributions.
However, an audit report for the financial year ending June 2024 has found major gaps in the rollout of the model.
Among the most significant issues raised is the submission of inaccurate information by applicants that distorts MTI scores and leads to misallocated funding. The report also determined that a vast majority of students remain in the dark on how the funding works, while delays in the release of loans and scholarships are disrupting their ability to pay tuition fees, obtain accommodation, and afford basic living costs.
The Auditor General further raised red flags on inclusivity. Students with disabilities and those from marginalized groups continue to face barriers in accessing finance support. The report also unearthed overlooked groups such as Muslim students, who are disadvantaged due to a lack of Sharia-compliant financing options, excluding them from full use of the scheme.
Rising loan default rates also threaten the sustainability of the funding model. Many graduates are unable to keep up with loan repayments due to high unemployment and underemployment, which has placed pressure on HELB’s revolving fund.
Coordination failures between key government entities have only worsened the situation. The audit noted a lack of coordination between HELB and the State Department for Technical and Vocational Education and Training (TVET), which created inefficiency in delivering support to the students.
Another crucial gap is the failure to connect the funding model and the Kenya Universities and Colleges Central Placement Service (KUCCPS) system. The missing connection between them prevents authorities from tracing students from the point of university placement to the point of receiving funds, creating a disconnect that frustrates timely and accurate financial support.
“In the circumstances, the effectiveness of the new funding model for higher education in supporting students’ funding requirements could not be confirmed,” Gathungu said.
While the model was intended to transform access to universities in Kenya, the audit findings present a picture of a system straining under the weight of poor data, limited inclusivity, weak coordination, and unsustainable financing. Reforms are needed sooner than later if the government is to fulfill its pledge of equitable and sustainable funding of universities.
