Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
The gross enrolment ratio for tertiary education (both sexes) was 4.6% in 2014. In 2012, the initial government funding per tertiary student as a percentage of GDP per capita was 66%, while the initial household funding per tertiary student was 169%.
Tuition-free status
While higher education at public universities was originally tuition-free (covering student tuition and living expenses), the growth of student numbers and prioritization of primary and secondary levels in the early 2000s led to the current dual-track tuition fee policy for public universities. Under this policy, public universities admit both fee-paying and government-sponsored students.
Governance
The Ministry of Education and Sports is responsible for financing public higher education institutions, including the Higher Education Loans Scheme. The Higher Education Students Financing Board was dissolved as part of the 2024 Higher Education Students Financing (Amendment) Act, with all its functions (including the management of higher education financing schemes and administration of funds) transferred to the Ministry of Education and Sports.
The National Council for Higher Education regulates higher education provision in the country, with no direct involvement in funding.
The higher education system consists of both public and private universities and other tertiary institutions. As of 2022, there were 9 public and 45 private universities; while there were 239 additional tertiary institutions.
The financing of higher education is mainly regulated by the 2001 Universities and Other Tertiary Institutions Act (last amended in 2006) and 2014 Higher Education Students Financing Act (as amended in 2024).
1. Education resources to subnational governments
While post-secondary education (including TVET centers and teacher training colleges) is funded through local governments, public universities are funded directly by the central government.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Private universities are primarily financed through student fees, with no funding from the central government.
Allocation and equity
Public universities are funded from grants or contributions from the central government; voluntary contributions from the district council; grants, contributions, loans and donations; and fees, as regulated by the 2001 Universities and Other Tertiary Institutions Act (last amended in 2006). University income must include payment of salaries, pensions and gratuities; building maintenance; and reserve funds. Fees payable by students are the primary source of income for universities.
The government pays a fixed amount to universities, with funds disbursed for recurrent and development expenses. The amount of the subvention is calculated based on the number of students and the unit cost which the Ministry finds reasonable for each specific institution.
Higher education institutions may also receive additional funding for government-sponsored students (recipients of scholarships or loans). Student loans are distributed directly to the institution on a semester basis, while funds for aids and materials for students with disabilities are deposited directly to student beneficiary accounts.
3. Education resources to students
Admission for vulnerable groups
According to the 2001 Universities and Other Tertiary Institutions Act (last amended in 2006), admission to public universities must be open to all qualified citizens without discrimination (Article 28). Admission committees of public universities are required to consider affirmative action in favor of marginalized groups in the admission process on the basis of gender, disability and disadvantaged schools.
In 2005, the government additionally introduced the district quota system, with districts allocated specific slots for students in public universities.
Scholarships, grants and loans for vulnerable groups
The 2014 Higher Education Students Financing Act (as amended in 2024) provides for the provision of student loans and student scholarships by the Ministry of Education and Sports to eligible students in accredited higher education institutions.
In determing student eligibility, the Ministry must take into account financial need, district quota, gender, socioeconomic needs and equity. Applicants must additionally be Ugandan citizens and admitted in an accredited higher education institution. The student loan scheme supports students intending to pursue selected undergraduate diploma and degree programmes in Science, Technology, Engineering and Mathematics (STEM) subjects and a few selected humanity programmes. Persons with disabilities are eligible to pursue any course in either the sciences or humanities.
Student loans cover tuition fees, functional fees, research expenses, and aids and appliances for students with disabilities, while student scholarships additionally cover accommodation fees, meals, and textbooks/reading materials (in addition to what is already covered by student loans).
Additionally, the district quota system was established as a cost-sharing mechanism, where the government covers a quarter of tuition expenses, leaving the remainder for the students to manage. This approach aids students who miss out on government sponsorship.
4. Support for students’ living costs
Transportation
Transportation costs are not covered by student loans or scholarships.
Accommodation
If funds are sufficient (and based on need), student loans may also cover accommodation and meal expenses, but this is determined by the Ministry. Student loan beneficiaries are generally expected to cater for welfare expenses (including accommodation, feeding, medical care and scholastic materials). However, accommodation expenses are covered as part of student scholarships, as regulated by the 2014 Higher Education Students Financing Act (as amended in 2024. Accommodation expenses are paid directly by the Ministry to universities for onward payment to the hostels/student residencies.
Textbooks
According to the 2014 Higher Education Students Financing Act (as amended in 2024), student scholarships also cover books and reading materials.
