By Brian Said Iha, July 21, 2026
President William Ruto has announced that every student admitted to a public university, Technical and Vocational Education and Training (TVET) institution, or public college will receive full government funding under a new higher education financing framework set to take effect from September 2026.
The announcement marks a major shift in Kenya’s higher education policy, effectively replacing the Student-Centred Funding Model introduced in 2023, which categorized students into different funding bands based on their socio-economic backgrounds.
Under the proposed universal funding model, all students placed in public institutions will qualify for government financial support regardless of their economic status, subject to the enactment of the necessary legal amendments.
President Ruto said the government has already submitted the required legislative proposals to Parliament to provide the legal framework for the new funding system and ensure its smooth implementation ahead of the next academic intake.
He noted that the reforms are intended to guarantee equal access to higher education by removing financial barriers that have prevented many qualified students from pursuing their studies.
Unlike the previous model, the new arrangement will not require mandatory parental contributions. Instead, parents and guardians who are financially able will have the option of voluntarily contributing towards their children’s education, while those unable to do so will not be compelled to pay tuition fees.
The President said the funding programme will benefit students enrolled in public universities, TVET institutions and Kenya Medical Training College (KMTC) campuses across the country.
To support the transition, the government has significantly increased budgetary allocations to the higher education sector in the 2026/2027 financial year.
A total of KSh40.4 billion has been allocated for scholarships targeting students in public universities, TVET institutions and KMTC, ensuring that tuition costs are fully covered under the new framework.
The government has also increased funding for the Higher Education Loans Board (HELB), allocating a record KSh56.7 billion to facilitate student loans for tuition and upkeep expenses.
According to President Ruto, the expanded HELB allocation is expected to strengthen financial support for students by ensuring timely disbursement of loans and reducing challenges that have previously affected beneficiaries.
In addition, the government has set aside KSh6.6 billion to clear outstanding salary arrears owed to university lecturers, a move aimed at improving industrial relations within public universities and preventing disruptions to academic programmes.
The President said the investment in higher education reflects the government’s commitment to expanding access to quality education while strengthening Kenya’s human capital and workforce development.
He added that education remains a key pillar of the Bottom-Up Economic Transformation Agenda (BETA), noting that equipping young people with knowledge and technical skills is essential for driving innovation, industrial growth and economic competitiveness.
The proposed universal funding model is expected to undergo parliamentary consideration before its planned rollout in September 2026.
If approved, it will represent one of the most significant reforms to Kenya’s higher education financing system, with the government expressing confidence that the new approach will promote equity, increase enrolment and ensure that no qualified student is denied an opportunity to pursue higher education because of financial constraints.
