The key elements of the New Funding Model are outlined below:

(i) The New Funding Model is based on the actual cost of the programme.
For universities, the cost of programmes varies from university to
university. Each university is required to declare the cost of its
programmes before students apply for placement as per the
Universities Act 2012. This will ensure that students are aware of the
financial implications of the programmes and universities that they
choose. The total cost of training for TVET trainees has been reviewed
to Ksh. 67,189 per trainee per year.

(ii) The Model is student-centred. Under the DUC model, universities used
to receive a uniform grant based on the DUC of a programme. Under
the New Funding Model, the funding will be awarded to students
according to the level of need.

(iii) The Model combines a scholarship, loan and a household contribution

based on Means Testing. The Model categories students into four
categories, namely, the Vulnerable; the Extremely Needy; the Needy
and the Less Needy. The categories are classified depending on the
monthly household income, as follows:

(a) Vulnerable – (Ksh. 0 Household income.

(b) Extremely Needy (Household income of Ksh. 0 to Ksh. 23,671 per

month.

(c) Needy (Household income of between Ksh. 23,672 and Ksh.

70,000 per month.

(d) Less Needy (Household income of between Ksh. 70,001 – Ksh.

200,000 per month.

(iv) The level of funding in scholarships and loans will depend on the
determined level of need for each student. The level of need will be
scientifically determined to ensure that all needy students are
adequately supported to pursue university education. To determine a
student’s level of need, the Higher Education Loans Board (HELB)
Means Testing Instrument will be applied. The HELB MTI scores
students based on the following 8 parameters:

a. Parent’s background – varied weights will be assigned to

different family types, e.g. orphans, children from single
parents.

b. Gender – varied weights will be assigned to male and female

applicants.
 c. Course type – varied weights will be assigned to different
subject areas: STEAM or Arts.

d. Previous school type – varied weights will be assigned to

whether one graduated from a private or public school.

e. Expenditure on education - varied weights will be assigned

depending on whether one has other siblings are in high
school/tertiary institutions.

f. Family size and composition -varied weights will be assigned

depending on family size: polygamous/monogamous and the
age of the parents.

g. Marginalization – varied weights will be assigned to applicants

from marginalized counties, or to institutions in those regions.

h. Disability - varied weights will be assigned to any form of

disability.

(v) The average allocation of scholarships and loans per student in each of
the four categories will be as follows: applicants categorized as
vulnerable will receive a Scholarship that will pay for 82% of the
programme cost and a loan that will be 18% of the programme cost.
Their households will contribute nothing. Those categorized as
Extremely Needy will receive a scholarship that will pay for 70% of
their programme cost and a loan that will pay for 30%. Their
households will pay nothing. Those classified as needy will receive a
scholarship of 53% of the total programme cost and a loan of 40% of
the programme cost. Their households will pay 7% of the programme
cost. The Less Needy will receive a scholarship of 38% of the total
programme cost and a loan of 55% of the programme cost. Their
households will pay 7% of the programme cost. This is tabulated
below:
(vi) The average allocation of TVET scholarships and loans per student in
each of the four categories will be as follows: applicants categorized as
vulnerable will receive a Scholarship that will pay for 80% of the
programme cost and a loan that will be 20% of the programme cost.
Their households will contribute nothing. Those categorized as
Extremely Needy will receive a scholarship that will pay for 70% of
their programme cost and a loan that will pay for 30%. Their
households will pay nothing. Those classified as needy will receive a
scholarship of 50% of the total programme cost and a loan of 30% of
the programme cost. Their households will pay 20% of the programme
cost. The Less Needy will receive a scholarship of 32% of the total
programme cost and a loan of 48% of the programme cost. Their
households will pay 20% of the programme cost. This is tabulated
below
(vii) The students will be awarded an allowance for their upkeep
(accommodation and daily subsistence). The amount awarded will also
depend on the level of need, in line with the four categories. The
amount to be provided for upkeep will be as indicated in the table
below:

(viii) The New Funding Model delinks placement from funding. Students will
apply for funding after being placed by the Kenya Universities and
Central Placement Service. The procedure for application is outlined
later in the presentation.