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What are the sources of finance for education in Kenya?

What are the sources of finance for education in Kenya?

Answers

Raphael
A. Internal sources: The domestic/internal sources of funding are broadly divided into public and private sources.
The public sources include contributions made by central, state and local governments.
Private sources of finance:
1. Student fees: It is well known fact that free and compulsory education is made at the primary stage, while fee
structure at the secondary and university level has remained constant during the post-independence period,
attempts at raising fees structure incorporates a large element of in-built subsidy, which is given
indiscriminately to all the students, furthermore, Kenyan education policy provides an open invitation to all qualified students to involve in the institution of higher education regardless of their capacity to profit from such education.
2. Educational Loans: The loans by banks and private institutions, (HELB) , being repayable in easy
instalments, can create a self-generating fund which can be recycled for the education of generations of
students. It would assist students to continue their higher education, because the education unemployment is increasing day by day which affects the repayment of loans
3. Individual/trusts donations: There is a decline in the proportion of contributions for education from private sources, and the philanthropic contributions have dried up. Therefore steps to be taken to augment private resources for education as no government can finance entire education system: the combined efforts of the government and the general public could meet the finance.

B. Public sources of finance: It includes the funds contributed from central and state, university grants, UNICEF and financial aid.
1. Central government: provides grants-in aids for centrally Sponsored schemes. These schemes are formulated by the Central Government and are included in the Centre’s five year plans, the Centre persuades the states to implement these schemes through financial incentives in the form of grants-in aid meet a larger proportion of the total expenditure of the states on those schemes. The Central Government provides assistance, for centrally assisted schemes.
2. State Governments in financing education: The state meets the non-plan and plan expenditure on education at all levels. The state incur no plan expenditure on education about one-fifth of their revenue in a financial year.
3. Grant-in-aid of revenue: The constitution provides for transfer of resources to the state government through grants-in-aid of revenue.
raphael answered the question on August 4, 2021 at 07:24

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