Kenya’s higher education funding system is under growing pressure following a sharp increase in the number of students qualifying for university admission after the release of the 2025 Kenya Certificate of Secondary Education (KCSE) results.
At least 270,715 candidates scored grade C+ and above, making them eligible for university admission. This marks a significant rise from 246,000 qualifiers in 2024 and 201,000 in 2023, intensifying concerns over whether available funding can sustain the growing demand.
Rising Numbers, Limited Resources
The surge comes at a time when public universities are already grappling with severe financial constraints. Parliament’s Education Committee has warned of a looming crisis, citing pending bills amounting to Sh72.2 billion as of May 2025. Lawmakers have described current Treasury allocations as insufficient to meet the sector’s expanding needs.
Private universities are also feeling the strain, with outstanding payments estimated at Sh58 billion, highlighting systemic funding challenges across higher education institutions.
HELB Warns of Tough Times Ahead
Higher Education Loans Board (HELB) Chief Executive Officer Geoffrey Monari acknowledged that the rise in eligible students aligns with HELB’s projections but cautioned that sustained growth could overstretch the loan portfolio unless additional funding is secured.
HELB estimates that about 90 per cent of eligible students will apply for loans. The agency is targeting loan recoveries of Sh6.2 billion this year, up from Sh5.2 billion recovered last year, as part of efforts to sustain funding.
“We are working closely with the National Treasury to ensure timely disbursement, while encouraging repayment so that more students can access loans without delay,” said Mr Monari.
He added that HELB prioritises disbursements based on university opening schedules and reinvests recovered loans to bridge funding gaps. According to him, no student has been left unfunded over the past three years.
Universities Fund: No Immediate Gap, But Caution Needed
Universities Fund CEO Edwin Wanyonyi said the current cohort follows historical trends, noting that roughly 90 per cent of qualifying candidates typically apply for university admission. Based on projections, about 240,000 new students are expected to join universities, with approximately Sh11 billion earmarked for scholarships.
Currently, 577,526 students receive government support, with 320,003 funded under the Differentiated Unit Cost (DUC) model and the rest under the Student-Centred Funding Model (SCFM).
In the 2024/2025 financial year, the government disbursed:
- Sh23.1 billion to public universities under the DUC model
- Sh564 million to private universities
- Sh16.9 billion under the new funding framework
Dr Wanyonyi explained that funding for the new KCSE cohort will fall under the next financial year starting in July, providing room for further negotiations with the Treasury. He also noted that the exit of the final DUC cohort will free up resources for scholarships under the student-centred model.
“At this point, based on our projections and engagements with the National Treasury, we do not see a significant mismatch between available funding and student needs,” he said.
The Way Forward
As enrolment continues to rise, stakeholders are exploring ways to expand university capacity more efficiently. Proposed measures include boosting research income, strengthening industry partnerships, adopting cost-saving technologies, and exploring cost-sharing arrangements.
The Universities Fund emphasized that funding higher education is a shared responsibility between the government, households, and institutions.
“We are engaging at multiple levels on how universities can generate income and manage costs better,” said Dr Wanyonyi.
With more students qualifying for university than ever before, the sustainability of Kenya’s higher education funding model will remain under close scrutiny in the coming years.
