Kaguchia warns university loans could leave poor families in debt for decades

Mukurwe-ini MP John Kaguchia has cautioned that Kenya's reliance on student loans to finance higher education could deepen economic inequality, warning that graduates from low-income households may spend up to 25 years repaying their education debts.

Kaguchia said the growing cost of education, coupled with limited financial support for disadvantaged families, could leave young people struggling financially long after completing their studies.

He argued that students who cannot afford university and other post-secondary training may be forced to depend on loans whose repayment obligations could constrain their ability to invest, build wealth or improve their living standards.

The legislator warned that such a system risks widening the economic divide by placing a heavier financial burden on poor households, while wealthier families remain better positioned to finance their children's education without borrowing. According to Kaguchia, prolonged loan repayments could undermine the very purpose of education as a pathway out of poverty.

His concerns also extended to the implementation of free education, with the MP questioning whether the government was providing adequate and timely funding to public schools.

He cited persistent capitation challenges, saying schools sometimes receive less money than the government has committed, leaving administrators with limited options to meet operational expenses. As an example, he said secondary schools expected to receive about Sh22,000 per learner annually were receiving only Sh14,000, creating a shortfall that may eventually be passed on to parents.

Kaguchia said such funding gaps undermine the promise of free education, as school administrators are often compelled to seek additional contributions from families to sustain learning activities.

The remarks come amid growing debate over the sustainability of Kenya's education financing system, particularly the university funding model introduced to determine government scholarships, household contributions and student loans based on financial need.

The government is expected to introduce adjustments to the university funding framework in January 2027, following concerns raised by students and parents over the affordability of higher education.

President William Ruto has pledged that financial difficulties should not prevent students from joining universities, pursuing diploma courses or enrolling at Kenya Medical Training College (KMTC). Speaking during a development tour of Kisii and Nyamira counties on November 8, the President said the government was preparing a revised funding arrangement to ensure that no student misses an opportunity to pursue further education because of their parents' financial circumstances.

Kaguchia has questioned whether the proposed changes will adequately protect disadvantaged students from accumulating long-term debt while ensuring that public schools receive sufficient funding.