The Higher Education sector in Kenya is undergoing a significant change in funding models in response to financial challenges that have gripped the public university system. This overhaul, however, fails to address the biggest challenge faced by these institutions – funding.
The new financing model introduces a University Fund, which will manage the allocation of funds to the 69 public universities in the country. Instead of direct government funding, the University Fund will distribute funds received from the government, donors, and other sources to the public universities. In addition, the Higher Education Loans Board will continue to fund individual students in both public and private universities.
In the past, the sector has struggled due to declining state revenues, leading to a significant amount of debt for public universities. The funding crisis can be traced back to the mid-1990s when neoliberal reforms were implemented, including the privatization of universities and the use of business models to generate revenue. While these changes led to a rapid growth in the number of universities and student enrollment, they also resulted in financial distress and a decline in the quality of education.
The recent reforms aim to provide adequate financial support to students, promote quality higher education, and ensure equitable support based on students’ financial needs. However, the effectiveness of these changes remains to be seen.
Despite the introduction of the new financing model, concerns remain about the sustainability of higher education funding. The reforms do not address important issues such as funding strategies for capital projects, uncoordinated university expansion, and a weak regulatory framework to monitor quality.
In order to address the challenges faced by the higher education sector, reforms that also focus on government funding, quality control, and sustainable system-wide expansion are necessary.
Overall, while the new financing model represents a significant change, it falls short of addressing the complex funding challenges faced by Kenya’s public universities. The effectiveness of these reforms in promoting quality education and providing equitable financial support to students remains to be seen.