Education Cabinet Secretary Julius Ogamba has explained how the government’s new funding model will work after President William Ruto announced a major overhaul of Kenya’s higher education financing system.
Appearing before the Senate National Cohesion and Equal Opportunities Committee on July 23, Ogamba said the government is seeking to merge all bursaries and scholarships into a single national funding kitty through a Bill before Parliament.
According to the CS, the government opted to overhaul the existing funding framework after finding that previous models were benefiting only about 40 percent of students, leaving many deserving learners without financial assistance.
“The funding model that the government has adopted is basically aimed at ensuring no qualified university student is locked out of class because they cannot afford to pay. We realized that under the previous model, only 40 percent of students were benefiting instead of the intended 80 percent,” Ogamba told the committee.
Why the New Funding Model Is Necessary
Ogamba said the reforms are also intended to address the financial challenges facing public universities, noting that 23 institutions were on the brink of insolvency as more students struggled to pay tuition fees on time.
The explanation comes days after the President hinted at a new funding model that would guarantee government funding for every student admitted to a public university or college, regardless of their household income.
On July 23, Ruto further elaborated on the proposed funding model, likening it to former President Mwai Kibaki’s rollout of free primary education.
He said the government plans to anchor the reforms in law through the Higher Education Loans Board (Amendment) Bill, which is currently before Parliament.
Also Read: Ruto Announces Full Govt Funding for All University, College Students from September 2026
Can the New Funding Model Work?
Lawyer and education expert Ken Echesa told The Kenya Times that although the government has the capacity to fully fund education at all levels, its current funding record casts doubt on whether the proposal can be implemented as promised.
Echesa argued that President William Ruto’s new funding model risks remaining a campaign promise unless the government addresses persistent funding challenges affecting the education sector.
He pointed to delays in the disbursement of capitation funds to public schools as evidence that the government has struggled to meet its existing education funding commitments.
“Schools cannot carry out tuition programs because the Government has not lived up to its promise of releasing capitation in its completeness to schools. Without goodwill from State actors, the promise of free education funded by government remains a mirage,” Echesa said.
Also Read: Ruto Explains Free University Model Will Work as Anxiety Hits Students and Parents
Scholarships and Loans
If approved by Parliament, the Bill will replace the current Higher Education Funding (HEF) model with a single education funding system.
Under the current HEF model, government support is divided into two parts:
- Government scholarships are non-repayable and are paid directly to public universities and TVET institutions to help cover students’ tuition fees.
- HELB loans are repayable. They include a tuition loan paid directly to the institution and an upkeep loan deposited into the student’s bank account or mobile wallet to cater for living expenses.
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