- Education CS Julius Ogamba says the proposed university funding model will shift government support from assessing parents’ ability to pay to financing students according to their programmes of study.
- He says the framework will guarantee support for eligible students, attract additional private-sector investment and create a sustainable revolving fund.
- Students joining universities in September have been assured that they will transition to the new system once the proposed legislation becomes law.
Education Cabinet Secretary Julius Ogamba has defended the government’s proposed university funding model, saying it will ensure every student admitted to a public university receives adequate financial support regardless of their family’s economic background.
Speaking at Kisii University during the opening of the Kongamano la Kiswahili cha Afrika Mashariki (CHAKAMA), Ogamba said the proposed funding reforms seek to address long-standing financial challenges that have left public universities struggling with debt and many students unable to complete their studies.
He explained that Kenya previously used the Differentiated Unit Cost (DUC) funding model, under which the government had agreed to finance up to 80 percent of the cost of university programmes.
However, due to budgetary constraints, the government was only able to provide between 37 and 40 percent of the required funding.
“As a result, many of our universities accumulated huge debts. By 2022, public universities were facing debts amounting to nearly KSh67 billion,” Ogamba said.
To address the crisis, the government introduced the student-centred funding model, which relied on the Means Testing Instrument (MTI) to determine how much financial support a student would receive based on the economic status of their parents or guardians.
According to the CS, the model unintentionally disadvantaged students admitted to expensive programmes such as medicine and engineering because it focused on the parents’ ability to pay rather than the student’s educational needs.
“We realised that students admitted to high-cost programmes were dropping out because we were effectively funding parents instead of funding students,” he said.
Ogamba said the new funding bill shifts the focus entirely to the learner.
Instead of assessing what parents can afford, the government will finance students based on the programme they have been admitted to pursue.
“If you are admitted to study law, then we are funding a future lawyer. If you are admitted to medicine, we are funding a future doctor. We are no longer funding the parent; we are investing in the student’s future,” he explained.
Private sector investment
The CS said the new approach is expected to attract investment from the private sector because education will be treated as a bankable investment rather than purely a social support programme.
He noted that discussions with private sector partners have shown a willingness to finance higher education once the investment is tied directly to the student’s future profession.
“Private investors are ready to support the programme because they see it as investing in future professionals such as doctors, engineers, teachers and lawyers,” he said.
Under the proposed model, every student admitted through the Kenya Universities and Colleges Central Placement Service (KUCCPS) will be eligible to apply for funding.
Students will receive financial support throughout their studies and will only begin repaying the funds one year after securing employment.
“There will be a one-year grace period after employment before repayment begins,” Ogamba said.
He added that the proposed legislation is intended to anchor the funding framework in law, enabling the government to mobilise additional resources from development partners and the private sector while creating a sustainable revolving fund.
Repayment rates expected to improve
According to Ogamba, the reforms will deliver several benefits, including equal treatment of all students, adequate funding, timely availability of funds and long-term sustainability of university financing.
He said the government expects repayment rates to rise from the current 70–75 percent to about 85 percent through improved recovery mechanisms contained in the proposed law.
“The new model treats all students equally. It removes parents from the funding equation and focuses on supporting the learner. Education is no longer viewed simply as a social service; it is an investment in Kenya’s future,” he said.
Ogamba further clarified that the new funding model will take effect immediately after the Bill is enacted into law.
He assured students preparing to join universities this September that they should proceed with their admissions as planned, adding that once the law comes into force, all eligible students will be transitioned into the new funding system.
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“There will be a transition period. Students should not worry. Once the law is operational, we will transition everyone into the new programme,” he said.
By Elizabeth Angira
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