The government is preparing to overhaul Kenya’s tertiary education financing system, with Education Cabinet Secretary Julius Migos Ogamba signalling a new approach that could shift funding decisions away from parents’ wealth and towards students’ career ambitions and the actual cost of their programmes.
The proposed framework seeks to address weaknesses that have emerged under the Student-Centred Funding Model, particularly for students pursuing expensive courses such as medicine and engineering.
Under the proposed system, the government wants a student’s financial background to have less influence over whether they can afford the career they have chosen.
New Model to Focus on Career Aspirations
Ogamba said the government is developing a Universal Student Funding Model intended to replace the current Student-Centred Funding Model introduced in 2023.
The new approach would focus on what a student is studying, the cost of the programme and their career aspirations rather than relying heavily on the financial circumstances of their parents or guardians.
The CS argued that the existing system has created difficulties for students enrolled in costly programmes.
Some learners pursuing medicine, engineering and other expensive courses have reportedly been forced to switch to cheaper programmes or abandon their studies because their funding does not adequately match the cost of their education.
That is precisely the problem the proposed model is designed to address.
Parents' Wealth Could Lose Its Dominant Role
Under the current funding system, students undergo assessment through the Means Testing Instrument, which considers the socio-economic circumstances of parents or guardians.
Students are subsequently placed into different funding bands, determining the level of government scholarship and loan support they receive.
While the model was designed to direct more assistance towards students considered financially vulnerable, its critics have questioned whether parental wealth is always an accurate measure of a student's ability to finance an expensive course.
A family may appear financially stable on paper but still struggle to meet the actual cost of a demanding university programme.
The proposed system seeks to change that equation.
Instead of asking primarily how wealthy a student's parents are, the government wants to consider what the student is studying and how much that education actually costs.
Costly Courses at the Centre of Reform
Medicine and engineering are among the programmes likely to benefit most if the proposed approach becomes reality.
These courses often require significant expenditure on tuition, accommodation, learning materials and other academic requirements.
Under a system that links support to household income without adequately accounting for programme costs, students in expensive courses can face funding gaps even when they qualify for government assistance.
Ogamba indicated that the new model would seek to bridge this gap by aligning financial support with the actual cost of a student's programme.
The proposed funding could cover tuition, accommodation and upkeep, creating a broader financing package for students in need.
Government Plans New Funding Authority
The proposed reforms are also tied to the Tertiary Education Placement and Funding Bill, 2026.
The legislation seeks to establish the Tertiary Education Funding Authority (TEFA), which would consolidate funding functions currently distributed among different government agencies.
The proposed authority would create a more centralised system for managing tertiary education financing.
The government also hopes the framework will mobilise additional resources from government and development partners to expand access to higher education and technical and vocational training.
If implemented, TEFA could significantly change how students apply for and receive financial support.
Repayment Linked to Employment
The proposed model would combine scholarships and loans, with repayment expected after graduates secure employment.
That approach could reduce the immediate financial burden on students while creating a mechanism for government to recover part of its investment in tertiary education.
The proposal also reflects a growing recognition that higher education financing cannot rely entirely on government grants.
However, the success of the model will depend heavily on how repayment is structured and whether graduates can secure employment quickly enough to begin servicing their loans.
Universities and TVET Institutions Could Benefit
The proposed reforms are not limited to universities.
Ogamba indicated that aligning funding with programme costs could also help address financial challenges facing technical and vocational education and training institutions.
This could become increasingly important as Kenya seeks to expand skills development and direct more young people towards technical and professional careers.
A financing system that follows the actual cost of training could potentially make some technical programmes more accessible to students from lower-income households.
Parliament Will Have the Final Say
Despite the government's ambitions, the proposed model is not yet guaranteed.
The Tertiary Education Placement and Funding Bill, 2026 will have to undergo parliamentary scrutiny, where lawmakers are expected to examine its financial sustainability, governance structure and the level of government support required.
The biggest question will be whether the government can finance a system that promises to cover more of the actual cost of education.
Expanding scholarships, accommodation support and upkeep assistance could require substantially more public resources.
There will also be questions over how loans will be recovered from graduates and how the government will prevent the new system from accumulating unsustainable student debt.
For now, however, Ogamba's proposal signals a major philosophical shift.
The government is considering a tertiary funding system where a student's future career and the cost of pursuing it could matter more than the size of their parents' bank account.
