The Ministry of Education has defended the New University Funding Model (NFM) before the Senate Standing Committee on Education, assuring lawmakers of the government’s commitment to sustaining higher education financing in Kenya.
This comes as the model faces legal uncertainty following a High Court injunction that halted its implementation.
Principal Secretary for Higher Education and Research, Beatrice Muganda, appeared before the Committee alongside Higher Education Loans Board (HELB) CEO Geoffrey Monari and other officials.
She emphasized that the NFM had reduced barriers to access and increased student applications.
“The New Funding Model has indeed reduced the barriers to accessibility to programs, and we continue to see an increase in student applications,” she stated.
The Senate 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 model’s suspension.
Lawmakers questioned whether students already placed under the NFM would continue receiving financial support and what alternative measures were in place to prevent disruptions.
“How will the New Funding Model benefit parents and students alike while also ensuring a better understanding of the band categorization?” Senator Kamar asked.
In response, PS Muganda confirmed that while the court order had paused full implementation, some aspects of the model were still operational. She assured senators that the government was engaging stakeholders—including the judiciary, universities, and financial institutions—to resolve legal challenges and provide clarity on higher education funding.
“The government is actively engaging stakeholders to resolve the legal challenges and restore certainty to higher education funding,” she stated.
HELB CEO Monari outlined alternative strategies to keep universities running, including a hybrid model combining government scholarships, student loans, and private sector partnerships.
“The government is also considering expanding HELB financing, improving bursary allocations, and adjusting university fee structures to balance affordability with institutional sustainability,” Monari said.
He further noted that HELB loan applications had increased by 5,000 students since the Board began sensitizing the public about the NFM, with loan recoveries currently at 64%.
The Ministry also urged universities to explore revenue-generating initiatives such as research, innovation, and consultancy services to reduce reliance on government funding.
Additionally, cost-cutting measures and digital transformation could optimize resources while maintaining academic standards.
Despite these assurances, the future of the NFM remains uncertain as the legal battle continues. The Senate Committee vowed to maintain pressure on the Ministry to develop a sustainable framework that ensures both accessibility and institutional financial stability.
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