The higher education sector has been facing significant financial challenges due to the increasing number of students qualifying for and enrolling in various higher education programs. This growth has led to a substantial rise in budget requirements, which are not being met by current budgetary allocations, causing financial strain on higher learning institutions. In response, the Ministry of Education (MoE) has developed a new, sustainable funding mechanism to address these issues and ensure the continued provision of quality higher education.
On May 3, 2023, His Excellency the President of the Republic of Kenya announced the introduction of a new funding model for higher education, effective from the financial year 2023/2024. This student-centered funding model (SCFM) represents a significant shift from the previous block funding approach, the Differentiated Unit Cost (DUC), which primarily allocated funds directly to institutions, a block amount which was shared amongst the enrolled students which led to a lower grant amount per student. Under the new model, financial support is targeted directly to students based on their level of need, as determined by the Means Testing Instrument (MTI).
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