The government is planning a large expansion of funding for higher education in the 2026/27 financial year, with new budget proposals showing a strong focus on easing the cost of learning for students across the country.
The plan, if approved, will see higher allocations for both student loans and scholarships, raising total support for learners to Sh92 billion.
Treasury Cabinet Secretary John Mbadi said the proposal includes increasing funding to the Higher Education Loans Board from the current Sh41 billion to Sh58 billion, alongside a sharp rise in scholarship funding.
He said the move is informed by direct engagement with students and reflects issues raised during public participation forums.
Mbadi spoke during a public engagement session in Kiambu County, where he said the views shared by students are already shaping key budget decisions ahead of the 2026/27 national budget.
“Just to give you assurance and confidence that our engagement here is not an academic exercise, even before we progress further with the budget process, I can tell you that some of the feedback we are getting from engaging with students is already finding its way into our BPS and the budget for 2026/27,” Mbadi said.
He noted that funding challenges raised by students had played a major role in the proposed changes, especially concerns around access to loans and scholarships.
“Most of the concerns that students have raised regarding funding have led us to propose an enhancement of higher education loans from the current Sh41 billion to Sh58 billion in the next financial year,” he said.
In addition to loans, Mbadi said the government plans to significantly increase scholarship allocations to support more students from vulnerable backgrounds. According to the proposal, scholarship funding will rise from Sh16 billion to about Sh34 billion.
“That means these two budget lines will move from around Sh57 billion to Sh92 billion,” he said.
He said the increased funding shows the government’s intention to reduce the cost of education and protect families from the growing financial pressure associated with higher learning.
“This is a demonstration that we want to put more resources towards educating our youth and make education cheaper even at that level,” Mbadi said.
The Treasury Cabinet Secretary also addressed concerns around funding for secondary education, saying the government is aware that current capitation levels for high school students are not adequate. He said the issue remains a priority even as the government operates under tight financial conditions.
“Even today’s papers have raised concerns that capitation is not adequate, and I agree. We have been underfunding our students in high schools, and this is something we are addressing, even with the constrained financial space that we have,” he said.
Mbadi added that the proposed budget reflects wider efforts to improve how student financing is managed and delivered, including reforms aimed at strengthening support systems.
“We have noted valuable feedback, including strengthening financial support for student funding. That is why we are talking about financing and reforming student loans,” he said.
He further said the government has adjusted how it supports higher education by moving away from older models and adopting a funding approach that takes into account the cost of specific courses.
“We have reformed the way we fund higher education, learning from how it used to be, and we are now looking at course-focused funding,” he said.
The proposed increases build on steps already taken to support learners in universities and TVET institutions. In July 2025, the Ministry of Education raised HELB funding from Sh36 billion to Sh41 billion for the 2025/26 academic year.
At the time, Education Cabinet Secretary Julius Ogamba said, “To ensure no student is left behind, the Government increased HELB’s annual funding from Sh36 billion to Sh41 billion.”
The Ministry of Education also confirmed that funds had started reaching students and institutions through HELB and the Universities Fund under the Student-Centred Funding Model.
Mbadi said the government plans to expand these efforts in the 2026/27 budget, subject to approval by Parliament.
