Gov’t to overhaul higher education funding as university admissions surge

Education Cabinet Secretary Julius Ogamba has confirmed that the government is on course with plans to reform the higher education funding strategy as it seeks to accommodate every eligible learner.

His assurance comes as Universities Fund Acting Chief Executive Officer Edwin Wanyonyi revealed that the number of Kenyans qualifying for university admission has increased by more than 300 per cent in less than a decade, piling pressure on the higher education financing system.

The Universities Fund says it has disbursed and allocated scholarships worth Ksh.78 billion over the past three financial years as demand for higher education continues to rise.

CS Ogamba, speaking on Friday during the 11th graduation ceremony at the University of Embu, defended the government’s proposed higher education funding reforms, criticising both the Differentiated Unit Cost model, which he said pushed many institutions into debt, and the 2023 Student-Centred Funding Model.

He argued that the Means Testing Instrument introduced under the Student-Centred Funding Model had, in some cases, prevented deserving students from pursuing their preferred courses.

“Where the parent was not determined as having the capacity to fund a doctor or an engineer, the student was forced to drop out of the course and take a course that the parent could afford. We have changed that thinking and said, let us fund the future of the student," he stated. 

A Bill currently before Parliament seeks to dissolve the Higher Education Loans Board (HELB0, the Universities Fund Board and the TVET Funding Board and replace them with a single body, the Tertiary Education Funding Authority.

The proposed law seeks to reform the current funding structure and create a unified framework for financing students in tertiary institutions.

Ogamba said the proposed changes would enable the government and its partners to mobilise resources to support students joining tertiary institutions.

“With that tweak, we are able to get stakeholders and partners who are able to put in resources to fund each and every student entering a tertiary institution fully,” Ogamba stated.

His remarks come amid growing concern over the sharp increase in the number of students attaining the minimum university entry grade of C+ and above, placing additional pressure on the country’s higher education financing system.

Speaking during an event to receive ISO recertification for quality systems management, Wanyonyi said the number of students qualifying for university had risen sharply.

According to the Fund, the number of students who attained the minimum university entry grade increased from 62,581 in 2017 to 270,715 in the 2025 KCSE cycle, representing an increase of more than 300 per cent in less than 10 years.

“These numbers tell a powerful story. But behind every number is a human being: a young woman from Turkana, a young man from Bungoma, a child from a low-income household who has worked hard to qualify for university. Our systems must therefore be equal to the dreams of our young people," he remarked. 

The Fund has also significantly expanded the number of students receiving support, from 118,153 beneficiaries in the 2023/2024 financial year to 408,879 in the 2025/2026 financial year.

The number is projected to rise further to 608,879 beneficiaries in the 2026/2027 financial year.

Wanyonyi said the government had committed Ksh.78 billion in scholarships for public university students under the Student-Centred Funding Model over the past three financial years.

“Under the Student-Centred Funding Model, the government has disbursed Ksh.47.9 billion in scholarships to public university students in the last three years. In the current 2026/2027 financial year, another Ksh.30.1 billion has been allocated, bringing the total to Ksh.78 billion,” Wanyonyi added. 

Another official at the Universities Fund said an effective financing mechanism was critical to the development of human capital, research, innovation and knowledge needed to drive national transformation.

As of August 20, 2026, the 2025 cohort had recorded 159,551 completed applications for government scholarships through the Higher Education Financing Portal.

A further 5,732 applications had not been completed, with the Universities Fund urging applicants to finalise the process by August 31, 2026.