Varsity Student Capitation Drops To The Lowest Level
Varsity Student Capitation Drops To The Lowest Level. In the fiscal year ending June 2023, the average capitation for government-aided students in private universities hit an all-time low of Sh35,415.55. This decline, coupled with nearly stagnant allocations from the financially strained treasury, prompted the state to terminate the funding agreement. During the final year of the program, 89,644 continuing students were affected by this reduced capitation.
This shift in funding dynamics led to a significant funding deficit for private universities, which stood at Sh14.35 billion for the fiscal year and accumulated to Sh41.6 billion over the six years of the programme. University Funding (UF) CEO Geoffrey Monari confirmed efforts to offset this deficit at the Ministry of Finance.
The previous average allocation per student from government sponsorship in private universities was Sh84,217.04 in June 2018. However, this amount has steadily declined due to increased enrollment and minimal budget increases. Starting in September, the state will adopt a new funding model that will offer scholarships, loans and grants instead of the previous capitation system.
Under the revised formula, financial support will be targeted at students and divided into four factors: vulnerable, extremely needy, needy and less needy. Government-supported students opting for private universities will now only be eligible for loans provided by the Higher Education Loans Board (Helb).
Private universities began accepting state-sponsored students in 2016 to ease pressure on overcrowded public universities. UF figures indicate that these private institutions received Sh15.32 billion for 89,644 Government Sponsored Students (GSS) by the end of the financial year.
The funding shortfall was a result of the Treasury’s failure to match funding allocations with the substantial increase in student numbers. The move from the differentiated unit cost (DUC) model, where the state paid up to 80 percent of tuition fees, to a new three-tier need-based funding approach (vulnerable, less vulnerable and able) aims to address these financial issues. faced by both private and public universities.
Varsity Student Capitation Drops To The Lowest Level