A record number of students admitted to universities this year has piled fresh pressure on the government's higher education funding system, leaving billions of shillings needed to support learners still out of reach.
The sharp rise in admissions is testing the student-centred funding model introduced in 2023, with growing demand for scholarships and loans exposing the financial strain facing the sector.
The funding model, rolled out after President William Ruto took office, is now facing its toughest challenge since its introduction. Official figures show university admissions have grown from about 70,000 students in 2017 to 202,133 placed this year, an increase of more than 300 per cent in less than a decade.
The steady growth in enrolment has increased the amount of money needed to support students at a time when public universities continue to struggle with huge financial obligations.
Currently, 437,648 students are being supported under the student-centred funding model. This includes 122,634 students admitted in 2023, another 134,889 enrolled in 2024 and 180,125 admitted in 2025.
The pressure is expected to rise further after the latest Kenya Universities and Colleges Central Placement Service (KUCCPS) exercise admitted more students who qualified for university education.
According to KUCCPS, 268,700 candidates attained the minimum university entry grade of C+ and above in the 2025 Kenya Certificate of Secondary Education (KCSE) examination. This was an increase of 24,137 students from the 244,563 who attained the same grade the previous year.
Overall, KUCCPS placed 293,869 students into degree, diploma and certificate programmes. Out of these, 202,133 secured university degree slots, while 28,246 joined the Kenya Medical Training College (KMTC). Another 765 students were placed at Kenya Utalii College, while 500 enrolled for the Kenya School of Law's Paralegal Studies programme.
The placement exercise also showed that 8,915 students who qualified for university admission chose to pursue Technical and Vocational Education and Training (TVET) programmes instead of degree courses, showing increased interest in practical skills training.
“In terms of student numbers, the growth is very significant. Over the last 10 years, enrolment has grown by more than 300 per cent," Universities Fund acting chief executive officer, Dr Edwin Wanyonyi, told the Nation.
Budget estimates for the 2026/27 financial year indicate that the Higher Education Loans Board (HELB) requires Sh112.1 billion to finance about 1.38 million university and TVET students through loans. However, the National Treasury allocated Sh56.3 billion, leaving a funding gap of Sh55.8 billion.
The allocation translates to about Sh40,694 per student against an estimated requirement of about Sh81,020 for every learner. This leaves a financing gap of about Sh40,327 for each student expected to receive support.
The Universities Fund is also facing a shortage of funds. The agency requires Sh47.36 billion to provide scholarships and institutional support but received an allocation of Sh31.1 billion, leaving a deficit of Sh16.26 billion.
Meanwhile, public universities are carrying pending bills of more than Sh100.3 billion, a challenge that education stakeholders warn is hurting learning, research, infrastructure development and the quality of higher education.