President William Ruto has announced a major overhaul of Kenya's higher education financing system, declaring that all students admitted to universities and colleges will receive full government funding once a new law takes effect.
Speaking at State House, Nairobi, on Tuesday, July 21, the President said the government would fully finance higher education for every student who qualifies for admission, ending the current funding model that allocates support based on household financial need.
The policy shift is expected to take effect from the September 2026 intake, subject to Parliament approving the proposed legislation.
New Funding Model to Replace Needs-Based System
Under the proposed framework, every student who passes national examinations and secures placement in a university or college will have their tuition and education costs fully covered by the government.
"Going forward, any student, so long as they have passed their examinations and they have been placed in a college or university, will get full funding for their higher education. It will be the choice for parents if they want to pay," Ruto said.
The announcement marks a significant departure from the Variable Scholarship and Loan Funding Model introduced in 2023, which classified students into different funding bands based on financial need.
That system attracted widespread criticism from students, universities and education stakeholders over delays in disbursements, inconsistent funding allocations and legal challenges questioning its implementation.
Major Budget Implications for Government
The new policy is expected to substantially increase the government's education expenditure, with the State assuming responsibility for financing all students admitted to public universities and colleges.
Parents will no longer be required to make mandatory contributions toward higher education costs, although those who wish to support their children financially will still be free to do so voluntarily.
The move could also reshape the operations of institutions such as the Higher Education Loans Board (HELB), whose role under the new financing framework is expected to change once Parliament approves the legislation.
The announcement comes just weeks after KUCCPS released placement results for thousands of students set to join universities, colleges, KMTC and TVET institutions in the September intake.
If enacted, the policy would represent one of the most significant reforms to Kenya's higher education sector in decades, with the government committing to universal financing of tertiary education while seeking to expand access and reduce financial barriers for learners.
