The Ministry of Education has defended the New University Funding Model (NFM) before the Senate Standing Committee on Education
Officials from the ministry also assured lawmakers that the government is committed to ensuring the sustainability of higher education financing in Kenya.
This comes at a time when the model is facing legal uncertainty following a High Court injunction that halted its implementation.
State Department for Higher Education and Research Principal Secretary Beatrice Muganda, appeared before the Committee accompanied by the Higher Education Loans Board (HELB) Chief Executive Officer Geoffrey Monari amongst other officers.
“The New Funding Model has indeed reduced the barriers to accessibility to programs and we continue to see an increase in student applications,” the PS said.
What’s the future of university funding model?
The Senate Education Committee, led by Vice Chair Senator Margaret Kamar, sought clarity on the future of university funding, raising concerns about students left in limbo due to the suspension of NFM.
Senators pressed the Ministry to explain whether students who had already been placed under the model would continue receiving support and what alternative solutions were being considered to ensure uninterrupted learning.
“How will the New Funding Model benefit the parents and students alike whilst also ensuring a better understanding of the band categorization?” enquired Sen Kamar.
In response, PS Muganda confirmed that while the court order had paused full implementation, some aspects of the funding model had already taken effect.
“The government, is actively engaging stakeholders, including the judiciary, universities, and financial institutions, to resolve the legal challenges and restore certainty to higher education funding,” stated PS Muganda.
PS Muganda further informed the Committee that the Ministry is exploring alternative approaches to keep universities running and ensure students receive financial support. Among the proposed solutions is a hybrid funding model that blends government scholarships, student loans, and private sector partnerships.
“The government is also considering expanding Higher Education Loans Board (HELB) financing, improving bursary allocations, and adjusting university fee structures to balance affordability with institutional sustainability,” stated HELB CEO Mr. Monari.
More students applying for loans under new university funding model
He further advised the Committee that since the Board commenced to disseminate information on the correct view of the Model, there has been an increase of loan applications by 5000 students and that HELB loan recoveries are at 64% currently.
Beyond short-term solutions, the Ministry emphasized the need for long-term sustainability in university financing.
Officials suggested that universities should embrace revenue-generating initiatives such as research, innovation, and consultancy services to reduce reliance on government funding.
Additionally, cost-cutting measures and digital transformation could help institutions optimize resources while maintaining academic standards.
Despite these assurances, the fate of the New University Funding Model remains uncertain as the legal battle continues.
The Senate Committee vowed to maintain pressure on the Ministry to develop a comprehensive and sustainable funding framework that ensures access to higher education while keeping institutions financially stable. For now, students, universities, and policymakers await the next steps in what has become a contentious issue in the education sector.
