KUCCPS - Summary of the Government’s New Funding Model for TVETs, Universities and Colleges

On Wednesday President Dr. William Ruto announced a new funding model for students pursuing TVET courses in public TVET institutions.

Highlights

The new model will finance students based on their level of need ranging from need, less needy and able.
TVET institutions will no longer receive block funding in the form of grants on differentiated unit cost as it has been the case.
Funding to students shall combine scholarships, loans and Household contributions on a graduated scale, scientifically determined by a Means Testing Instrument (MTI).
Students will be categorised according to four levels of need vulnerable, extremely needy, needy and less needy.
Students from needy households joining TVETS will receive government scholarships up to a maximum of 50% and 30% In loans. Their Households will pay 20% of the costs.
The less needy students joining TVETS, will be funded 32% for government scholarships, 48% for loans and their households will pay 20% of the costs.
Students who are eligible shall apply for government scholarships, loans and bursaries, as well as complementary funding from other sources, such as county governments, the National Government Constituency Development Fund and private companies.
Budgetary allocation for TVETs will increase from Sh 5.2 billion to Sh10 billion in the 2023/24 financial year, translating to Kshs 67,189 per year per trainee down from Kshs. 71,420 for the new intake of May 2023.
The new model of funding higher education is also expected to be implemented effective this academic year 2023/2024, and will commence with the new cohort of 145,325 joining TVETs.
All continuing government-sponsored students shall be supported in line with the previous existing funding model.
All TVETs should, with immediate effect, disclose and provide information on the cost of their academic programmes to the Kenya Universities and Colleges Central Placement Service (KUCCPS).
The Placement Service shall publish this information prior to the placement of students to assist students to make the right choices of courses and TVET institutions they would like.
Overall, there will be four funding streams to ensure the sustainability of TVETs. These shall include Student-centred funding; research funding; capital infrastructure grants; and fee-for-services, such as consultancy.