President William Ruto has announced that all students admitted to universities and colleges will receive full government funding for their higher education, marking a significant change in Kenya’s education financing policy.
Speaking at State House in Nairobi on Tuesday, July 21, the President said every student who passes national examinations and secures placement in a university or college will qualify for government funding, regardless of their family’s financial status.
“Going forward, any student, so long as they have passed their examinations and they have been placed in a college or university, will get full funding for their higher education. It will be the choice for parents if they want to pay,” Ruto said.
The proposed system is expected to take effect in September 2026 once Parliament passes the required legislation.
The announcement marks another shift in higher education financing under the Kenya Kwanza administration.
When President Ruto assumed office in 2022, his government moved away from the previous Differentiated Unit Cost (DUC) model, under which public universities received block funding from the government while students largely relied on Higher Education Loans Board (HELB) loans and limited scholarships.
In May 2023, the government introduced the Student-Centred Funding Model, also known as the Variable Scholarship and Loan Funding (VSLF) Model.
Under this framework, students were classified according to their level of financial need using a Means Testing Instrument (MTI). Depending on the assessment, government scholarships ranged between 30 and 70 per cent, with the remaining costs met through HELB loans and household contributions.
The model, however, attracted criticism from students, parents and education stakeholders, with concerns raised over the accuracy of the means-testing criteria, delays in funding disbursements and affordability for vulnerable learners. Several court cases were also filed challenging aspects of its implementation.
Under the newly announced policy, the government says it will fully finance higher education for all students admitted to universities and colleges, effectively replacing the variable funding approach. Parents will only contribute voluntarily if they choose to do so.
