Kenya’s education budget set to hit record Ksh 702B as enrolments surge, student loans cross Ksh62B

Ministrry of Education
Ministry of Education offices in Nairobi. File photo

The Kenya’s education budget is set to hit record Ksh 702 Billion billion in the 2025/26 financial year, up from Ksh 615.8 billion in 2024/25, according to the Economic Survey 2026 released by the Kenya National Bureau of Statistics (KNBS) on April 30, 2026.

The survey presents a sweeping picture of Kenya’s education landscape: enrolments rising across all levels, technical training gaining ground, university financing surging under the New Funding Model (NFM), and the country’s Competency-Based Education (CBE) reaching a historic milestone.

Where the money is going

Recurrent expenditure for the education sector is expected to rise by 13.3 per cent to Ksh 672.3 billion in 2025/26, accounting for 95.8 per cent of the total education budget.

The Teachers Service Commission (TSC) takes the single largest share, with its allocation rising by 4.9 per cent to Ksh 386.5 billion, representing 57.5 per cent of total recurrent education expenditure.

The State Department for Higher Education is set for a dramatic 72.5 per cent jump in its recurrent allocation to Ksh 141 billion, driven by the need to fund implementation of the Collective Bargaining Agreement (CBA) for university lecturers. Recurrent spending for Basic Education is expected to drop by 5.4 per cent to Ksh 109.4 billion, while the TVET allocation rises by 27.9 per cent to Ksh 35.4 billion.

Development expenditure is set to grow by 32.7 per cent to Ksh 29.8 billion. TVET development spending is on track to more than double from Ksh 3.3 billion to Ksh 7.8 billion, while Higher Education development spending is projected to grow more than fivefold to Ksh 2.8 billion, earmarked for establishing Nyandarua and Kabarnet university colleges and expanding infrastructure in existing institutions.

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More schools, more institutions

The physical footprint of Kenya’s education system also expanded. The total number of basic learning institutions grew from 129,463 in 2024 to 130,659 in 2025. Pre-primary schools rose from 47,760 to 48,190, primary schools from 38,997 to 39,339, junior schools from 31,951 to 32,079, and secondary schools by 2.8 per cent to 11,051.

The number of public primary Teacher Training Colleges (TTCs) rose to 34 following the operationalization of Eldas Teachers Training College. Accredited TVET institutions grew by 13.4 per cent to 3,126, while the number of universities increased from 72 to 74, after Bomet University received a charter and Consolata International University received a Letter of Interim Authority.

Millions more children in classrooms

Pre-primary school enrolment grew by 7.1 per cent from 2,914,413 in 2024 to 3,121,429 in 2025, with girls accounting for 49.6 per cent of total enrolment. The number of trained pre-primary teachers grew by 5.5 per cent to 81,843, of whom 87.4 per cent were female.

Total enrolment in primary and junior schools combined rose by 11.2 per cent to 11,935,700 in 2025, a figure that captures a country sending more children to school than at any point in its history.

The 2025 academic year marked a milestone for the Competency Based Education (CBE) system. For the first time, all three grades of junior school were simultaneously occupied, with 3,701,100 learners enrolled in Grades 7, 8, and 9 combined.

As the 8:4:4 system continues to be phased out, secondary school enrolment dropped by 22.7 per cent to 3,338,800 learners, now comprising only Form 2, Form 3, and Form 4, after Form 1 transitioned to Grade 9 in junior school. The number of learners on the school meals programme grew marginally by 0.1 per cent to 2,653,775.

Assessments and KCSE performance

In assessments, 1,130,694 learners registered for the Kenya Junior School Education Assessment (KJSEA) in 2025, of whom 98.5 per cent sat for the exam. At Grade 6, 1,297,310 learners registered for the Kenya Primary School Education Assessment (KPSEA), though the number who sat dropped by 3.5 per cent, attributed to the merging of some assessment centres.

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Despite declining secondary school enrolment, the Kenya Certificate of Secondary Education (KCSE) registered a 3.2 per cent rise in candidates to 995,841 in 2025. The number who scored C+ and above, the university entry cutoff, grew by 4.7 per cent to 270,478. Female candidates at C+ and above rose by 3.4 per cent to 130,280, while their male counterparts grew by 5.8 per cent to 140,198.

A tripling of junior school teachers

On the teaching workforce, public primary school teachers grew by 1.5 per cent to 215,691 in 2025. Junior school teachers more than tripled from 21,000 in 2024 to 68,325 in 2025, following transfers from primary schools and the confirmation of interns on permanent and pensionable terms. Secondary school and TTC teachers grew by 0.5 per cent to 131,501.

Teacher training surges on lowered entry bar

Teacher training is booming. Total enrolment in teacher training colleges surged by 57.1 per cent to 64,636 in 2025. Male trainees grew by 65.5 per cent to 23,350 while female trainees rose by 52.7 per cent to 41,286. Enrolment in public primary colleges specifically jumped from 36,282 to 51,766.

The surge follows a review of minimum entry requirements, which lowered the KCSE threshold for teacher training from a grade of C (Plain) in cluster subjects to an overall mean grade of C (Plain).

TVET is having a moment

Technical and Vocational Education and Training (TVET) colleges is also gaining serious ground. Total enrolment in TVET institutions rose by 17.3 per cent to 825,484 in 2025, the clearest sign yet that technical training is gaining real traction among Kenyan youth.

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Enrolment in private Technical and Vocational Colleges (TVCs) drove much of the growth, jumping by 79.7 per cent to 196,790. Enrolment in Vocational Training Centres (VTCs), however, declined by 7.4 per cent to 147,680. The number of TVET trainers and instructors grew by 9.9 per cent to 21,833.

Universities expand, placements rise

At the university level, the Kenya Universities and Colleges Central Placement Service (KUCCPS) placed 182,391 students into public and private universities in 2025/26, up from 157,762 in 2024/25. Public university placements grew by 18.2 per cent to 164,518, while private university placements dropped by 3.7 per cent to 17,873.

Total undergraduate and postgraduate enrolment in public universities grew by 14.3 per cent to 589,900 in 2025/26, while private university enrolment rose by 22.3 per cent to 132,600. The Open University of Kenya (OUK) saw its enrolment grow from 3,106 to 4,900.

Record HELB loans as NFM dominates student financing

For students worried about fees, the news is significant. The Higher Education Loans Board (HELB) disbursed a record Ksh 62.0 billion in total loans in 2025/26, a 32.1 per cent jump from the previous year.

Loan applicants grew by 3.7 per cent to 1,087,262, of whom 65.9 per cent were awarded loans. Male applicants grew by 5.5 per cent to 634,900 while female applicants rose by 1.4 per cent to 452,362.

The New Funding Model (NFM) is now the dominant financing mechanism. Loans disbursed under the NFM rose by 69.7 per cent to Ksh 53.1 billion in 2025/26, with NFM loan beneficiaries rising by 37.9 per cent to 489,229. Public university students received Ksh 47.3 billion, 89.1 per cent of all NFM loans.

HELB bursaries dropped sharply by 37.4 per cent to Ksh 148.5 million in 2025/26. KNBS attributed the decline to the exclusion of NFM students, who now receive scholarships instead of bursaries. TVET student loan beneficiaries also fell by 46 per cent to 157,376, with KNBS citing pending identification of first-time loan beneficiaries.

By Benedict Aoya

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