Kenya’s higher education system is set for a major overhaul, with the government proposing to merge the Higher Education Loans Board, the Universities Fund, and the TVET Fund into a single agency.
The new body will be known as the Tertiary Education Funding Authority.
The proposed changes are contained in the Tertiary Placement and Funding Bill 2026, which is currently before parliament.
The bill seeks to overhaul funding for the education sector, with the aim of making higher education more affordable and accessible to all.
Under the proposal, TEFA will become the central body responsible for financing students in public universities, colleges, and TVET institutions.
The authority will take over key functions currently handled by HELB, including student financing and loan recovery.
It will also manage funding previously administered through the Universities Fund and the TVET Fund Board.
The bill proposes shifting from the current income-based funding model introduced in 2023 to a universal funding approach.
Under this model, eligible students admitted to public tertiary institutions would receive full government support.
President William Ruto announced the plan on Tuesday, July 21, pledging full government funding for students starting September 2026.
“Going forward, any student, so long as they have passed their examinations and they have been placed in a college or university, will get full funding for their higher education,” Ruto said.
He added that it would be up to parents to decide whether they still wanted to contribute.
The proposed funding would cover tuition, accommodation, and living expenses, with beneficiaries required to repay their contribution once employed.
Ruto criticised the previous differentiated funding model, saying it nearly collapsed several universities.
“We tried the differentiated model. I think the Vice-Chancellors here know it didn’t work because it made most of our universities almost close down,” he said.
The bill is awaiting parliamentary debate, with the government pushing for its approval ahead of the September rollout.