Education Cabinet Secretary Julius Ogamba has defended the government’s proposed changes to Kenya’s higher education funding system, saying the changes are necessary to ensure every qualified student can access tertiary education as the number of university entrants increases.
Speaking during the 11th graduation ceremony at the University of Embu, Ogamba said the government is reviewing the current funding framework to address challenges under previous financing models.
He highlighted some gaps in both the Differentiated Unit Cost (DUC) model and the Student-Centered Funding Model introduced in 2023.
According to him, the Means Testing Instrument used under the Student-Centered Funding Model had denied deserving students the opportunity to pursue courses aligned with their career aspirations.
“Where the parent was not determined to have the capacity to fund a doctor or an engineer, the student was forced to change courses and take one that the parent could afford. We have changed that thinking and said, let us fund the future of the student,” Ogamba said.
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Students Under University Funds
This comes as thousands of students prepare to apply for admission to universities and other institutions of higher learning.
According to the Universities Fund, the number of learners qualifying for university admission rose from 62,581 in 2017 to 270,715 in the 2025 KCSE cycle, an increase of more than 300 percent.
Data from the Universities Fund shows that out of the 202,133 students placed in public universities for the 2026/2027 academic year.
Out of the 202,133 students placed, 159,551 had completed their applications through the Higher Education Financing (HEF) Portal by August 20, 2026.
A further 5,732 applications remained incomplete, while an estimated 42,582 students had not secured completed funding applications ahead of the commencement of studies.
Beneficiaries increased from 118,153 in the 2023/2024 financial year to 408,879 in the 2025/2026 financial year, with a projected rise to 608,879 beneficiaries during the 2026/2027 financial year.
Universities Fund chief executive officer Dr Edwin Wanyonyi urged those with incomplete applications to finalize their applications before the August 31 deadline.
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Julius Ogamba on Proposed Tertiary Education Funding Authority
To address funding concerns, the government is backing legislation currently before Parliament that seeks to establish the Tertiary Education Funding Authority (TEFA).
The proposed body would replace the Higher Education Loans Board (HELB), the Universities Fund Board and the TVET Funding Board under a single financing framework.
According to the Cabinet Secretary Julius Ogamba, the new structure will make it easier to mobilize resources from government and development partners.
While the government has allocated KSh 30.1 billion for scholarships in the 2026/2027 financial year, the Universities Fund estimates that it needs about KSh 47 billion to adequately support eligible students.
Currently, the Universities Fund has a shortfall of about KSh 17 billion as student enrollment increases. In the 2023/2024 financial year, the government allocated KSh 12.4 billion for scholarships.
Funding increased to KSh 16 billion in 2024/2025, although demand exceeded available resources by KSh 9.6 billion.
In 2025/2026, the government provided KSh 18.9 billion, leaving a funding gap estimated at KSh 12 billion.
Over the past three financial years, public university students have received KSh 47.9 billion in scholarships. An additional KSh 30.1 billion has been allocated for the current financial year, bringing the total commitment to KSh 78 billion.
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