Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2024, the gross enrolment ratio for tertiary education (both sexes) was 10%. The initial government funding per tertiary student as a percentage of GDP per capita was 68% in 2015.

Tuition-free status

While higher education used to be tuition-free in the 1960s and 1970s, the increased number of students led the government to introduce a cost-sharing model through the provision of loans and scholarships for needy students (with tuition fees only covered for these students).

Under the New Higher Education Funding Model (introduced in 2023, and currently being revised), higher education is funded through household contributions, loans and scholarships, with no provision for free higher education. The New Funding Model provides guidelines on the nature of tuition fees to be paid in different programmes, with different universities implementing different tuition fee charges.

Governance

The Ministry of Education supervises higher education through the State Department for Higher Education and Research. The Higher Education Loans Board (HELB), a State Agency under the Ministry of Education, is responsible for the provision of loans and scholarships to students in public and private universities, while the Universities Fund (UF) manages scholarships and grants.

The Commission for University Education is responsible for the accreditation and quality assurance of university education in both public and private universities.

1. Education resources to subnational governments

Subnational funding mechanisms

Universities are funded directly by the central government.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

The 2024 Universities Bill permits private higher education providers to operate in the system. Private institutions may receive government funding for scholarships or loans, with a requirement to account for any funds received from the government.

Allocation and equity

In 2023, the government introduced a New Higher Education Funding Model, known as the Student Centred Funding Model. Under this model, universities no longer receive block capitation grants from the exchequer, but instead are funded through varied student loans, scholarships, and household contributions. This funding model is student-centred, with scholarships and loans provided to students based on their assessed levels of need (vulnerable, extremely needy, needy, and less needy) as determined by the Means Testing Instrument (see section 3). Students categorised as vulnerable are eligible for up to 100% government funding, while others receive a combination of scholarships and loans.

All universities accredited by the Commission for University Education (CUE) are eligible for government funding. Both public and private universities are funded based on students’ fees, loans, and scholarships.

In 2025, the government planned to revise the New Higher Education Funding Model, tackling concerns related to equity and student assessments.

3. Education resources to students

Admission for vulnerable groups

There are no national quotas or specific admissions criteria for vulnerable groups to enrol in higher education programmes. Marginalised students are instead supported through the New Higher Education Funding Model.

One of the functions of the Commission for University Education is to develop criteria and requirements for admission to universities, as regulated in the 2024 Universities Bill.

The Kenya Universities and Colleges Placement Service (KUCCPS) is responsible for the placement of students in their desired and qualified courses upon application.

Scholarships, grants and loans for vulnerable groups

Student Centred Funding Model

The Higher Education Loans Board (HELB), a State Agency under the Ministry of Education, is responsible for the provision of loans and scholarships to students enrolled un public and private universities and TVET colleges. The Universities Fund (UF) provides undergraduate grants and scholarships to government-sponsored students enrolled in public universities.

According to the New Funding Model, students are classified into five bands according to the socioeconomic characteristics of the household in which they live. The factors of placement are based on the Means Testing Instrument (MTI) developed by Higher Education Loans Board (HELB), a scientific method used to determine the student’s level of financial need by using proxy indicators. MTI parameters include family structure (orphanhood) , gender, course type, previous school type, expenditure on education, family size and composition, persons with disabilities, and marginalisation. Geographical distribution and gender are considered during the scholarship award, with applicants from marginalised regions highly encouraged to apply. Students from low-income households receive more grants and fewer loans while the other bands receive fewer grants and more loans. In 2023/24, nearly half (48%) of government funding for tertiary education was issued as grants.

Elimu Scholarship Programme

Since 2005, the Elimu scholarship programme, has provided secondary and tertiary scholarships to disadvantaged students across all counties in Kenya. Initially launched as a charitable initiative, it was incorporated into the government expenditure framework in 2015.

The programme, managed by the Ministry of Education through the Jomo Kenyatta Foundation, Equity Group Foundation, and the German Foundation, targets orphans, children from low-income backgrounds, residents of informal urban settlements, refugees, and students with special needs or disabilities. Scholarships are awarded based on disadvantage, KCPE exam performance, and affirmative action.

The 2024 Basic Education Scholarships and Bursaries Bill establishes the Basic Education Scholarships and Bursaries Council to succeed the Jomo Kenyatta Foundation in managing the programme.