Private universities in Kenya are calling for a radical overhaul of the country’s higher education funding model. The National Association of Private Universities in Kenya (NAPUK) has submitted a proposal to the Ministry of Education, recommending a shift from scholarships to loan-based funding for sustainability.
The Proposal: A Shift to Student Loans
In its document sent to Education Cabinet Secretary Julius Ogamba on February 11, 2025, NAPUK argues that the current funding structures are unsustainable and inequitable. The proposal seeks to:
- Reduce dependency on government scholarships and grants.
- Increase funding through student loans, recoverable in future.
- Award scholarships based on performance and priority government programs.
- Create a more inclusive loan system for tuition, books and upkeep.
The shift, according to NAPUK, will take Kenya away from a “social-welfare orientation” to a sustainable funding approach.
Additional Funding Sources
To complement the proposed loan-based system, NAPUK suggests the following revenue-generating measures:
- Higher Education Levy – Employers of graduates could be required to contribute, just like with industrial training levies.
- Unclaimed Assets – Billions of shillings held by the Unclaimed Assets Authority could be channelled to higher education.
- Education Bonds – Introduction of bonds to generate long-term funding.
- Endowment Fund – A new body to manage investments for future student support.
NAPUK Chairman Simon Gicharu wants a National Students Financial Aid Corporation to be created, which would be mandatory to source funds beyond government allocations.
Government’s Higher Education Funding Crisis
Universities, particularly public ones, have been facing a funding crisis for years. In 2023, the government introduced a new funding model that combined scholarships and loans. But the model was stopped by the High Court in December 2024, leaving thousands of students – including those in private universities – struggling to pay tuition fees.
University enrollment has grown rapidly, from 361,379 in 2013 to 246,391 in 2024. This has stretched government resources, resulting in underfunding. The Differentiated Unit Cost (DUC) model, which guided funding allocation, was underfunded, with public universities getting 66% of required funds and private universities 18%.
Way Forward
NAPUK wants the government to base funding of higher education on data. The association warns that if the crisis is not addressed, universities will be in further chaos and both students and staff will be affected.
With higher education debt stand at Ksh 80 billion, the call for new funding model is now. Will the government adopt NAPUK’s proposal? Only time will tell but one thing is certain – Kenya’s university funding model needs to change now.