TVET Seek Additional Funding Sources To Enhance Budget

TVET Seek Additional Funding Sources To Enhance Budget. As the government revisits its funding strategies for the 2024/25 financial year after shelving the contentious finance bill, the Technical and Vocational Education and Training (TVET) sector faces a significant financial shortfall. The sector is set to lose nearly Sh1 billion in anticipated government funding, impacting its budget and operations.
The Budget Deficit Challenge
In its 2023/27 strategic plan, the Technical and Vocational Education and Training Authority (TVETA) identified a need for Sh3.2 billion to fund its operations. However, the National Treasury allocated only Sh2.5 billion, resulting in a deficit of Sh823 million. This gap has prompted TVETA to seek additional funding sources to bridge the shortfall.
Mobilizing Additional Resources
To address the over Sh800 million deficit, TVETA plans to mobilize additional resources from various sources, including development partners and enhanced revenue collection for services rendered. Currently, 90% of TVETA’s recurrent and development activities are funded by the government, with the remaining 10% coming from Appropriation in Aid (A-i-A).
Development Partners And Revenue Collection
TVETA’s revenue projections from service fees (A-i-A) are based on Gazetted fees and support from development partners. The anticipated enrolment of approximately 500,000 TVET trainees per year during the 2023-2027 period is a key factor in these projections. TVETA expects to collect at least 75% of the payable Gazetted fees to ensure the successful execution of its planned activities.
Strategic Planning And Technology Leveraging
Recognizing the scarcity of resources, TVETA stresses the importance of strategic planning to identify priorities that will significantly impact TVET stakeholders. This involves re-engineering business processes and leveraging technology to optimize operations and resource utilization.
Potential Tuition Fee Hikes
In light of the funding challenges, TVETA has suggested cost-sharing for services as a means to optimize revenue streams. This may lead to an increase in tuition fees in tertiary institutions. Additionally, TVETA aims to raise A-i-A through the enhanced collection of all Gazetted fees, including accreditation fees, quality assurance, and the sale of standards for tertiary institutions, while continuing to advocate for increased government funding.
Lessons From The Past
TVETA has noted that during the last strategic plan period, government grants and collected A-i-A were insufficient to fully support its functions. To avoid similar shortfalls, the Authority plans to intensify resource mobilization efforts and expand its resource base.
Impact Of Budget Cuts
The National Treasury Cabinet Secretary, Njuguna Ndung’u, recently informed Parliament of the budget cut implications following the government’s decision to drop new tax measures in the 2024 finance bill due to public opposition. The absence of these revenue-raising measures is expected to result in a Sh200 billion shortfall.
Conclusion
The budget cuts have significantly impacted key institutions in Kenya’s tertiary education sector, potentially hindering the ability to equip youth with necessary job market skills. TVETA efforts to secure additional funding and optimize its revenue streams are crucial to maintaining the quality and effectiveness of vocational and technical training in Kenya.
Proper planning, strategic partnerships, and efficient resource management will be essential for TVETA to navigate these financial challenges and continue its vital role in the education sector.