For thousands of students beginning university, the first days on campus have come with a major unanswered question: who will pay for their education?
Nearly 195,000 first-year students have already reported to universities, but many remain unsure whether the government will provide the financial support they expected for tuition, accommodation and upkeep.
The uncertainty comes as the government prepares to change the way students in universities, colleges and TVET institutions are financed, with the Tertiary Education Placement and Funding Bill, 2026, now before the National Assembly.
Higher Education Principal Secretary Beatrice Inyangala said on Tuesday that students should not panic over the delay, saying the government would provide direction once the transition to the new system is complete.
"I want to allay the fears of any parents, guardians or students about payment of school fees. During this transition period, the universities are admitting students and we shall guide them appropriately when this process is finalised, she said.
The proposed law would mark a major change from the student-centred funding model introduced in 2023. Instead of combining government scholarships and loans depending on a student's circumstances, the new plan seeks to have all students placed in public universities, colleges and TVET institutions financed through loans.
Under the proposed arrangement, the government would meet the full cost of a student's education, with the amount treated as a loan. The graduate would then be expected to repay the money after securing employment.
The changes have come at a difficult time for students who have already arrived at their respective institutions and need immediate financial support to settle into university life.
"Up to now, we have around 195,000 students who have reported out of the expected 202,000 students" the PS said.
Prof Daniel Mugendi, chairman of the Public Universities Vice-Chancellors' Committee, said the number of students reporting was encouraging, with some universities receiving more than 90 per cent of the students placed in their institutions.
He said students who need State assistance should not stop the application process because of the uncertainty surrounding the proposed funding changes.
"Those students who need help and support from the government in either form of scholarships and loans should still go ahead and apply" Prof Mugendi said.
He added that universities had ways of identifying students facing the greatest financial hardship and could use needy funds to assist them as they wait for the government to give further direction.
The need for such assistance is high, particularly among students from families with limited incomes. Many of them depend on government scholarships, loans or a combination of the two to pay for tuition, accommodation and daily expenses.
Data from the Universities Fund shows the extent of the demand. By August 20, 159,551 university students had completed applications for financial support through the Higher Education Financing (HEF) portal.
Of those applications, 150,403 included a Universities Fund scholarship. Some 149,761 students applied for both a scholarship and a loan, while 642 sought scholarships without loans.
Another 9,148 students applied for loans only.
The pressure on the scholarship programme has also increased over the past three financial years. In 2023/2024, the government met the entire Sh12.4 billion requirement for scholarships.
The following year, it allocated Sh16 billion against a requirement that left a Sh9.6 billion gap. In 2025/2026, the government provided Sh18.9 billion, but the requirement was Sh12 billion higher.
The shortfall has now grown to Sh17 billion in the current financial year, even as the number of students expected to require scholarship support continues to rise.
The number of scholarship beneficiaries is projected to grow from 408,879 last year to about 608,879, increasing pressure on the government as more learners seek help to pursue higher education.
The application figures suggest that a large number of students entering university have already turned to government funding at a time when the State is considering a complete change in how that assistance will be provided.
Prof Mugendi said students whose families could afford to meet the cost of university education should continue paying their fees while institutions await official guidance from the government.
For students from struggling households, however, the uncertainty could create problems from the start of their university journey. Their families may not have enough money to cover expenses as they wait to know what form of State support they will receive.
Universities may be able to offer temporary help to some of the most needy students, but such measures cannot settle the wider question over how thousands of government-supported learners will finance their studies under the proposed new system.