Over 368,000 university students in Kenya risk missing out on education funding after government allocated only half of what was required in the Budget Policy Statement for 2025–2026.
The funding gap affects students under both the old Differentiated Unit Cost (DUC) model and the new funding model which was declared unlawful by the High Court last year.
Higher Education Funding
According to a report presented to the National Assembly Education Committee by Principal Secretary for Higher Education and Research, Beatrice Inyangala, the total required amount for scholarships and grants is KSh 77.58 billion. Only KSh 40.49 billion has been allocated leaving a huge funding gap of KSh 37.09 billion. These funds are managed by the Universities Fund.
Further, the Higher Education Loans Board (HELB) which provides loans to students requires KSh 81 billion but has only been allocated KSh 46.9 billion. This will affect 474,814 students in universities and Technical and Vocational Education and Training (TVET) institutions who depend on HELB support.
Dr. Inyangala warned that students from middle- and low-income backgrounds will have to bear higher out-of-pocket expenses and may drop out. This, she noted, defeats the government’s effort to increase access to higher education.
HELB Funding Model
As a result of the financial crisis, HELB is shifting from solely government funding to social bond financing. The National Treasury is working with HELB to design the social bond which will involve contributions from investors.
Private University Claims
During the committee session, concerns were raised about a claim by private universities that government owes them KSh 45 billion. Dr. Inyangala said the amount is still under review by the Pending Bills Committee and has not been officially acknowledged as government debt.
“We didn’t admit that we owe this money. We are waiting for direction from the Pending Bills Committee,” the PS told MPs.
MPs warned that such claims if not properly scrutinized can lead to misappropriation of public funds. Acting committee chair Jerusha Momanyi, the Kisii Woman Representative, questioned how fraudulent claims are always legitimized through documentation.
Government Funding for Private Universities
MPs also questioned government’s role in financing private universities especially infrastructure projects. Requests from institutions like Tangaza and Baraton universities raised concerns about taxpayers funding private businesses.
Dr. Inyangala said the initial requests were not well articulated and will make necessary revisions. “The request was to ensure enough capitation under the agreed funding model. If private universities get their allocation in full, they can finance their projects on their own,” she explained.
MPs said budgetary allocations for private institutions must be clearly defined to avoid misinterpretation. Lugari MP Nabii Nabwire said if the requests had been approved as presented, they would have created a direct budget line for private university projects which is not acceptable.
Rising Fees and Student Burden
The committee also looked into the rising university fees and the student’s financial burden. Some MPs asked about reports that some private universities had retroactively added fees on student portals. Dr. Inyangala told the committee that the matter was being investigated and the Universities Fund would iron out any discrepancies.
She reaffirmed the government’s commitment to transparency and accountability in university funding saying “We will guide and correct any miscommunication to reflect the intended policy direction.”
Conclusion
With a huge funding gap threatening university education in Kenya the government has to find a lasting solution. The shift to social bond for HELB funding, scrutiny of private universities financial claims and ensuring fair tuition fees are steps to addressing the crisis. But unless the gap is bridged thousands of students will fail to complete their education and the country’s future workforce and development goals will be in jeopardy.