President Ruto Defends New Student Loan Funding Model Despite Growing Concerns.
President William Ruto recently stood firm on the new student loan funding model introduced in September 2024, despite strong opposition from students who had hoped for a return to the previous system. This new model, according to Ruto, is essential for the survival and prosperity of Kenya’s universities. Although students pushed for lower interest rates and the elimination of loans, the President emphasized the importance of maintaining the loan system to ensure the sustainability of the funding pool. As the number of students appealing their financial aid classification rises, with 26,000 already requesting reviews, Ruto’s defense of the new model remains resolute.
Student leaders from various universities recently lobbied for a return to the old funding model, but Ruto, backed by Vice Chancellors, rejected their appeals. He painted the previous model as unsustainable, revealing that by June 2023, 23 out of 40 universities were nearly insolvent. Vice Chancellor’s Committee Chairman, Prof. Daniel Mugendi, supported the President’s stance, stating that the initial implementation of the new model has already begun to rescue struggling institutions.
According to Mugendi, this model, which tailors funding to each student’s individual needs, could lead to a complete turnaround for universities within three years. Additionally, he warned that reverting to the old system would result in underprepared graduates due to insufficient resources.
Ruto further highlighted that his administration has significantly increased funding for university education, from Sh45 billion when he took office to over Sh80 billion. The new model reflects the true cost of educating students, with each university assigning value to courses based on the actual cost of instruction. This shift ensures that students receive adequate resources to complete their studies, ultimately contributing to a more robust and effective higher education system.
Challenges and Controversies Surrounding the Model
Despite the President’s strong defense, students continue to express concerns about the new funding model. Many have called for the loan component to be scrapped, arguing that it places an undue burden on graduates. However, Ruto insists that the loan is crucial for the sustainability of the education funding pool. He pointed out that the government owes universities Sh138 billion, a debt resulting from its failure to cover 80 percent of the tuition costs for government-sponsored students under the old model. Without the loan component, Ruto argues, the system would be unsustainable, putting future students at risk.
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Additionally, the President criticized the old model for funding all courses at the same rate, regardless of the actual cost of instruction. The new model addresses this issue by allowing universities to set course fees based on their true costs. This change, Ruto believes, will ensure that students receive a quality education tailored to the demands of their chosen fields.
To tackle broader educational challenges, including the Competency-Based Curriculum (CBC) and university funding, Ruto appointed a 42-member task force to drive necessary reforms. He warned that failing to address these issues could have disastrous consequences for the nation’s future. The President also defended the criteria used to categorize students for financial aid, known as the Means Testing Instrument.
This tool, developed through a multi-agency approach involving the Kenya Revenue Authority (KRA), Kenya National Bureau of Statistics (KNBS), and the National Integrated Identity Management System (NIMS), aims to ensure a fair and accurate assessment of student needs.
Key Takeaways
President Ruto’s defense of the new student loan funding model underscores its importance for the future of Kenya’s higher education system. While students remain concerned about the loan component and the perceived lack of transparency in the Means Testing Instrument, the President remains firm in his belief that the new model is the best path forward.
By tailoring funding to individual student needs and accurately reflecting the cost of education, this model aims to provide the necessary resources for students to succeed while ensuring the sustainability of Kenya’s universities. However, as student appeals continue to rise, the success of this model will ultimately depend on its implementation and the government’s ability to address the concerns of its stakeholders.
President Ruto Defends New Student Loan Funding Model Despite Growing Concerns.
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