The government has proposed a new higher education financing model that would provide full funding for all students who qualify for admission to universities and other institutions of higher learning.
President William Ruto announced the proposal on Tuesday at State House, Nairobi, saying the government had submitted amendments to the law that would allow every student who passes national examinations and secures admission to a higher learning institution to receive full financial support regardless of their family’s economic background.
“Currently, we have a proposal before Parliament that will make higher education accessible to all. It will not matter which family a student comes from, but their academic ability. Any student who qualifies and gets admission will receive full funding,” President Ruto said.
The President urged Members of Parliament to fast-track amendments to the Higher Education Loans Board (HELB) Act to allow students joining universities in September to benefit from the proposed system.
The announcement signals a possible shift away from the higher education funding model introduced in 2023, which has faced criticism from students, parents and education stakeholders over challenges in accessing adequate financial support.
President Ruto said the previous model had failed to achieve its intended objectives, leaving many public universities struggling financially after the government was unable to provide the promised funding.
“We later introduced a shared responsibility model where parents contributed part of the tuition fees, the government provided grants, and the remaining amount came through loans. We thought it would create fairness, but it has proven insufficient,” he said.
Under the proposed system, parents who are able and willing to contribute towards their children’s education will still have the option to do so. However, students whose families cannot afford tuition fees would receive full government support.
“We do not want any student to fail to continue with education because of lack of money,” President Ruto said.
However, the government has not yet released detailed information on how the proposed funding model will work, including how much it will cost and how it will be financed.
Higher Education Principal Secretary Dr Beatrice Inyangala said the proposal is still being reviewed before it is formally presented to stakeholders and Parliament.
“We are still refining and finalising it. It is a process that requires time,” she said.
The Chairperson of the Committee of Vice Chancellors of Public Universities, Prof Daniel Mugendi, said universities had not yet received full details of the proposed system.
“We have not received detailed information. Once the details are completed, we will be involved in further discussions,” he said.
Higher education financing remains one of the biggest challenges facing the government, with debts owed by public universities increasing from about KSh60 billion in 2022 to more than KSh85 billion.
Meanwhile, HELB Chief Executive Officer Geoffrey Monari has proposed that the institution raise funds through financial markets by issuing a KSh500 million social bond to ensure students receive funding on time.
Currently, about 450,000 HELB beneficiaries are repaying their loans, enabling the board to collect approximately KSh700 million every month.
Apart from loans, HELB allocates KSh237 million annually in grants for students with special needs, with KSh137 million going to university students and KSh100 million allocated to TVET students.
