NAIROBI, Kenya- President William Ruto has announced plans to overhaul Kenya’s higher education financing system, promising a new framework aimed at ensuring that all university and college students receive government support.
The President said the government was moving towards a funding model that would provide more predictable financial assistance to learners in universities, Technical and Vocational Education and Training (TVET) institutions and other tertiary colleges.
Ruto said the reforms would address challenges that have affected students under the current funding system, which relies on a combination of scholarships, loans and household contributions based on assessed financial need.
New Funding System to Replace Fragmented Model
The proposed changes are expected to consolidate existing higher education financing structures into a single coordinated system.
The government has been working on reforms that would bring together agencies involved in student placement, scholarships, loans and tertiary funding under one framework.
Ruto has argued that the current system requires restructuring to ensure that funding follows students based on their needs rather than primarily supporting institutions.
Speaking during education sector engagements, the President said the reforms would create a more equitable and student-centred approach to financing higher education.
Current Funding Model
Kenya introduced a new student-centred funding model in 2023, replacing the previous approach where government funding was largely channelled directly to universities.
Under the model, students are assessed through a means-testing system and receive different levels of government support through scholarships and loans depending on their financial circumstances.
The government said the system was designed to ensure that the most vulnerable students receive greater support.
However, the model has faced criticism from some students and institutions over delays in disbursements, funding gaps and increased financial pressure on learners.
Planned National Funding Authority
As part of the reforms, the government has proposed restructuring higher education financing through a new institution that would bring together various funding agencies.
The proposed framework seeks to merge functions currently handled by bodies including the Higher Education Loans Board (HELB), Universities Fund, TVET funding agencies and student placement structures.
The aim is to create a single platform responsible for:
- Student placement.
- Scholarships.
- Loans.
- Grants.
- Career guidance.
- Skills development funding.
Universities Facing Funding Pressure
The announcement comes as public universities continue to face financial challenges.
Higher education institutions have raised concerns over delayed funding, rising operational costs and growing student numbers.
The government has maintained that reforms are necessary to create a sustainable financing model that supports both learners and institutions.
What It Means for Students
If implemented, the new funding structure could change how students access financial support.
Students are expected to benefit from:
- A centralised application process.
- More predictable funding.
- Better targeting of government assistance.
- Expanded support for university and TVET learners.
The government says the ultimate goal is to ensure that financial challenges do not prevent qualified students from accessing higher education.
The Road Ahead
The proposed reforms will require legislative and administrative changes before full implementation.
Ruto’s administration says the changes are part of a broader plan to align Kenya’s education system with labour market demands while expanding access to skills training and higher education.
The President has previously stated that no deserving student should be locked out of education because of financial constraints.