The government has revealed why it is walking away from the university funding model introduced three years ago, saying it failed to support the majority of students and pushed public universities into deeper financial trouble.
Education CS Julius Ogamba said the decision to replace the system was informed by its poor performance, with thousands of qualified learners missing out on financial support despite the model being designed to widen access to higher education.
Appearing before the Senate National Cohesion and Equal Opportunities Committee, Ogamba said an assessment by the government showed the funding framework had not achieved its intended purpose.
Instead of reaching 80 per cent of university students as planned, only about 40 per cent benefited, leaving many learners unable to afford their studies.
“The funding model that the government has adopted is basically out to ensure no qualified university student is locked out of their studies because they cannot afford it,” Ogamba told senators.
“We realised that under the previous model only about 40 per cent of university students were benefiting instead of the intended 80 per cent,” he added.
Education Cabinet Secretary Julius Ogamba before Senate Standing Committee on National Cohesion, Equal Opportunity on July 23, 2026.
PHOTO/MoE
The CS was responding to concerns raised by Makueni Senator Daniel Maanzo, who sought an explanation on why the government had opted to change the funding system and whether enough resources had been provided to support all students who qualify for university education.
Ogamba said the review also exposed serious financial challenges facing public universities. He disclosed that 23 public institutions were nearing insolvency as unpaid tuition fees denied them the revenue needed to run their operations.
To address the problem, the government has submitted a Bill to Parliament seeking to bring all bursaries and scholarships under one funding kitty. Ogamba said the plan is intended to ensure deserving students receive financial assistance through a more organised and reliable system.
“We want a system where every qualified student can pursue higher education regardless of their background,” Ogamba said.
His remarks come days after President William Ruto announced that the government would replace the needs-based funding model with a universal funding system covering all students placed in universities and Technical and Vocational Education and Training (TVET) institutions through the Kenya Universities and Colleges Central Placement Service (KUCCPS).
The President said the government reached the decision after finding that the current funding model had failed to provide fair access to higher education. He also faulted the earlier Differentiated Unit Cost (DUC) model, saying universities remained under financial pressure because government allocations did not match the actual cost of training students.
The proposed changes will require Parliament to amend existing higher education laws before the new funding framework can be implemented. Until that process is completed, the current funding model will continue to operate.
Meanwhile, the Higher Education Loans Board has opened applications for loans for continuing students in the 2026-27 academic year, indicating that the existing funding arrangements remain in place as the government prepares for the transition.