Over 70,000 students could lose out on government loans and funding.
Under the new funding scheme, nearly 70,000 students who are scheduled to enroll in universities this year are likely to lose out on government scholarships since the Ministry of Education has not received the necessary funding.
According to estimates made to Parliament, there is a Ksh. 48 billion cash shortfall in higher education funding, which would pay for student loans, grants, and scholarships.
Higher Education and Research PS Beatrice Inyangala stated, “We have projected the number of students who qualified for funding to be 153,000 but are projecting 122,000 will require funding.”
“As we speak now we have enough resources to cover the students right from the first year to the fourth year, through the first semester.”
The severity of the financial imbalance for both new and continuing students is demonstrated by documents that the State Department of Higher Education and Research submitted to Parliament last week.
For this fiscal year, the ministry needs Ksh. 130 billion to cover loans, grants, and scholarships; however, it has been given Ksh. 84.5 billion, leaving a Ksh. 48.7 billion financing shortfall.
As of June of this year, 128,000 students have applied for money overall, and the number is expected to increase even higher, according to the higher education funding authorities.
Just 32 percent of qualifying students will be given loans. The total cost of scholarships for the full 2023 KCSE cohort is Ksh.12.45 billion, according to ministry documents. Only 48,800 pupils can be supported with the Ksh. 4.28 billion that the government has allotted. 73,700 students will lose out on scholarships as a result.
Only Ksh 1.39 billion of the Ksh 13.76 billion required by the ministry to be given as student loans have been obtained; this is insufficient to sustain the 12,307 new students who will be enrolled this year.
Ongoing students will also be severely impacted by the financial crisis, particularly those who attend private colleges on government scholarships.
Only 6,500 of the potential 67,600 pupils will profit from the Ksh. 574.8 million made available to them; 61,000 students would be left financially vulnerable. This is in contrast to the Ksh. 1.6 billion that is needed.
The administration has insisted that the funds will be available to the students in time for them to start classes.
“I am confident that as one is availed as we collect more income, we shall enhance the budget for these loans and scholarships,” Inyangala added.
Despite the current financial difficulties, the ministry claims that because households are only expected to contribute 7% of the course cost, the new funding model has made higher education more accessible.
It has been reported by several students—particularly those from rural areas—that they have trouble getting to the internet and Huduma centers in order to submit grant applications.
Over 70,000 students could lose out on government loans and funding.
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