Vihiga Students to Benefit as Government Unveils Career-Focused University Funding Plan

CS Ogamba Unveils New University Funding Model Prioritising Student Careers
Education Cabinet Secretary Julius Migos Ogamba has announced plans for a new university funding model that will focus on students' career choices rather than their parents' financial situation.

Ogamba made the announcement on Friday, August 21, 2026, during the 11th graduation ceremony of the University of Embu. He said the proposed Universal Student Funding Model is expected to transform how students receive financial support for higher education across Kenya.

What the New Model Proposes
The new system is contained in the proposed Tertiary Education Placement and Funding Bill, 2026, which is currently before Parliament for debate and approval. The legislation seeks to ensure that students can pursue courses based on their abilities and career goals, rather than being limited by their families' financial capacity.

"We have changed that thinking by now, focusing on the future of the students by funding their professional careers," Ogamba said during his address.

The government hopes the new approach will reduce cases where students abandon their preferred careers because their families cannot afford the cost of their education, particularly in expensive programmes such as medicine and engineering.

Current System Faces Challenges
Under the current Student-Centred Funding Model, introduced in 2023, the government uses a Means Testing Instrument to assess the financial situation of a student's parents or guardians. Students are then placed in different funding bands, which determine the level of government scholarships and loans they receive.

However, the government acknowledges that the system has faced significant challenges. Some families may be assessed incorrectly, leaving students with insufficient financial support. Students taking expensive courses have sometimes struggled to meet the full cost of their education despite receiving government support.

Major Structural Changes Proposed
The Tertiary Education Placement and Funding Bill, 2026 proposes sweeping changes to how tertiary education is financed in Kenya. The legislation seeks to merge the Higher Education Loans Board (HELB), the Universities Fund, and the Technical and Vocational Education and Training Funding Board into a single body called the Tertiary Education Funding Authority (TEFA).

Under the proposed framework:

• All students placed through the national system would receive 100 percent government funding as loans, rather than the current mix of scholarships, loans and family contributions
• Funding would cover tuition, accommodation and living expenses for eligible students
• Loan repayments would commence within one year of completing studies or shortly after securing employment
• Monthly deductions would be capped at 25 percent of a beneficiary's earnings
• Graduates in formal employment would have repayments deducted through payroll systems

What This Means for Students
Principal Secretary for Higher Education and Research Beatrice Inyangala has confirmed that as the country moves towards Universal Funding for Higher Education, all students will be funded equally.

"I confirm that as we move towards Universal Funding for Higher Education, all students will be funded equally. The loans will be awarded to students irrespective of whether they go to a public or private university," Inyangala said.

The proposed Bill would empower TEFA to mobilise resources beyond the Exchequer, including private capital, non-traditional financing mechanisms, consolidated public bursary and scholarship schemes, education savings products and stronger loan recovery systems to finance future cohorts.

Implementation Timeline and Concerns
President William Ruto has pushed Parliament to fast-track the amendments so the new funding model can apply from the September 2026 university intake. However, there are fears the new funding model will not be ready by next month when first-year students report to campus.

The Bill imposes strict penalties for non-compliance, including a Sh1 million fine or imprisonment for up to two years for employers who fail to remit student loan deductions.

Uncertainty Remains
Despite government assurances, uncertainty continues to cloud the university funding overhaul. Three years after the launch of the current model, rising debts and student hardship have forced the government to abandon it in favour of the new framework.

The legislation is now in Parliament for debate and approval, with MPs pushing for changes to protect low-income students under the proposed loan model.

What Happens Next
The Tertiary Education Placement and Funding Bill, 2026 must be passed by Parliament and signed into law before it can take effect. If approved, the new system would consolidate student admission, loans and scholarships under two powerful state agencies, fundamentally changing how Kenyan students access and finance higher education.

For students from Vihiga County and across Western Kenya, the new model could mean greater access to university education based on merit and career aspirations rather than family financial status. However, the shift to a 100 percent loan-based system also means graduates will carry the full cost of their education as debt, to be repaid once they enter the workforce.

Share Your Thoughts

We would like to hear from you.

• Do you support the shift to a 100% loan-based university funding model?
• How will the new funding system affect students from Vihiga County?
• What safeguards should be put in place to protect low-income students under the proposed model?

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