Abstract

Higher education funding in Rwanda uses a costs sharing approach. This has been analyzed to ascertain its suitability for Rwanda. This research looked at other funding methods that can be applicable for the higher education sector in Rwanda. These included use of PPP, tuition fees, bank loans and internally generated funds by higher learning institutions. It was found in this research that costs sharing approach is a good model in Rwanda but it has faced the challenge of using financial means testing (FMT) to identify potential beneficiaries. There FMT is viewed by most respondents as unfair and that in some cases, financial assistance has not been given to those that deserve it due to corruption in the system. The other funding methods mentioned above have also been analyzed and appropriate conclusions arrived at in the research findings. It was also found out that a failed higher education system would impact on the economic development of the country and also if the higher education sector is underfunded, this will impact on the quality of the graduates and the sector as a whole. There is need for policy change by government of Rwanda towards funding of its higher education.

Key words: Costs sharing, financial means testing (FMT), higher education funding model, public private partnerships (PPP).