Education Cabinet Secretary Ezekiel Machogu has told public universities and other higher learning institutions to come up with innovations that can help them remain afloat in the face of shrinking funding.

The CS said the government will not change its new higher education funding model for universities anytime soon, noting the new approach had addressed challenges that universities and TVET institutions have been grappling with.

“Some of you are yet to move out of your comfort zones to become part of the solution to the problems that afflict our universities,” said Machogu.

Machogu was speaking in Mombasa when he graced the 2024 leadership training workshop for university vice chancellors and principals.

He confirmed that the government had disbursed Sh23.6 billion for funding education of first year students who sat the Kenya Certificate of Secondary Education (KCSE) exam last year and have been placed at various universities under the new funding model.

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He said the funds will benefit government-sponsored students who successfully made their applications through the recently launched financing portal. He said the funds would also benefit the 2023/2024 cohort of continuing students who are in their second semester.

“I wish to inform you that so far the government has disbursed Sh23.6 billion for loan and scholarships for first year students under the model. The government disbursed the funds directly to individual universities to cover tuition fees,” said Machogu.

Machogu said the government had also disbursed Sh17.5 billion for capitation for second, third and fourth year students and warned learning institutions against misuse of funds.

“We challenge universities to ensure prudent use of the resources allocated to them. There have been integrity challenges, but we call for prudent leadership in managing the resources,” said Machogu.

The Cabinet Secretary said the enrollment rate for public university was at 80 per cent and the government was seeking to establish where the 20 per cent went.

“We are very concerned, where are these 20 per cent? Have they gone to other tertiary institutions? I think we need to establish where they are because the government has already invested in their education and this is wastage of resources,” said Machogu.

He added: “We urge universities to work with communities and other stakeholders to ensure that the transition rate from secondary school to university is raised.We need to ensure that we get value for money.”

Graduate level

The Cabinet Secretary urged the university bosses to curb corruption and create solutions to the financial challenges they face.

“Universities are facing limited and dwindling resources, especially from the Exchequer, a situation which requires prudent management strategies,” he added.

Machogu implored universities to ensure they produce quality graduates who are ready for the job market.

In 2023, 22,774 graduated from Kenyan universities.

He said the rising number of graduates had also been recorded at the graduate level where 455 graduated with doctorate degrees.

“While applauding the commendable rise in graduation rates, exemplified by the impressive number of degrees awarded last year, we must underscore the paramount importance of quality,” said Machogu.

He urged the universities and tertiary institutions to reposition themselves for admitting the first cohort students who complete junior secondary school and align their programmes with the competence based curriculum.

The Higher Education Loans Board (Helb) has commenced disbursement of loans to continuing students at universities and technical and vocational institutions.

This comes months after the government issued a directive on the new method of funding higher education.

In a statement issued by Helb Chief Executive Officer,Charles Ringera, students’ upkeep funds will be channeled through learners’ bank accounts or the Helb mobile wallet.

“Over 175,000 undergraduate students and 70,000 TVET continuing students will receive funding under the Old Higher Education Funding Model(OFMO),”said the Helb chief.

The funds are expected to reflect from October 5,with the government urging universities and colleges to register students for learning.

For first-time students applying for government funding, the deadline remains October 7,2023,as earlier directed by Education Cabinet Secretary Ezekiel Machogu.

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They are required to apply for funding under the New Higher Education Funding Model(NFM) for both loans and scholarships.

Previously,before President William Ruto-led government introduced the new Helb model, each student under the government-sponsored programme at a university could receive between Sh40,000 and Sh60,000 per academic year.

However, the loan was disbursed in two instalments, with part of each instalment paid directly into the institution’s fee account and the remainder paid into the learner’s personal account.

Under the government’s recently unveiled funding formula for higher education. Helb is required to allocate loans to students on the basis of need.

The exact formula and criteria for identifying needy students remain unclear.

Public universities and institutions have also reviewed their tuition fees, with some institutions doubling them.

The increase in fees is likely to lock out bright but financially disadvantaged students from accessing higher education.