An Analysis of Kenya’s New Higher Education Funding Model and its Implications on Equity, Quality, and Sustainability

The study’s aim was to undertake a rapid policy analysis of Kenya’s New Higher Education Funding
Model (NHEFM) and its implications on equity, quality, and sustainability of higher education financing. It aimed at addressing the challenges encountered in higher education institutions due to massification in enrolment amidst diminishing exchequer financing. The NHEFM was unveiled by the government on 3rd May 2023, after a recommendation by the Presidential Working Party on Education Reform (PWPER). According to the PWPER, the NHEFM replaces the Differentiated Unit Cost (DUC) model previously used to finance higher education and separates placement from automatic funding (Republic of Kenya, 2023).