Enhancing Transparency and Security in Means Testing for Education Financing: A Blockchain-Based Approach

Kenya's higher education system has undergone significant reforms to enhance equitable access, with increasing student enrolments each year. To address financial challenges, the Ministry of Education introduced the New Funding Model (NFM), which uses the Means Testing Instrument (MTI) to allocate aid based on socioeconomic status. However, findings from implementing agencies and stakeholders show that the MTI faces challenges related to data integrity, privacy, transparency, and inefficiencies in inter-agency communication. This paper examines these issues and proposes a blockchain-based model to enhance security, accuracy, and transparency in financial aid distribution. It assesses blockchain's potential to reduce fraud, improve efficiency, and promote need-based funding. The study employs a mixed-methods approach, incorporating surveys and interviews with stakeholders in education financing, blockchain, and policymaking to evaluate the feasibility of blockchain in Kenya's higher education funding system. Additionally, it outlines policy recommendations for scalable and sustainable blockchain adoption, aligning with national education goals.