State allocates Sh4.2 billion to universities
Education
By
Mike Kihaki
| Mar 13, 2026
Universities Fund Chief Executive Officer Edwin Wanyonyi says the latest allocation forms part of the budgetary provisions for the 2025/2026 financial year. [Fiile, Standard].
Public universities are expected to receive Sh4.2 billion this week to support continuing students under the government’s new higher education financing system.
The funds, to be disbursed by the Universities Fund, will support learners enrolled under the Student-Centred Funding Model (SCFM), a framework introduced to improve higher education financing.
Universities Fund Chief Executive Officer Edwin Wanyonyi said the latest allocation forms part of the budgetary provisions for the 2025/2026 financial year.
READ MORE
State now banks on special economic zones, EAC to boost trade
How Middle East war has disrupted Kenya's meat exports
Kenya to host Africa urban forum next month
Informal livestock trade continues to hurt Africa's pastoral economies
Why property buyers are seeking higher grounds
Inside Watamu's developments spurring beach tourism
KCB unveils record Sh22 billion dividend payout as profit surges
Stima Sacco reports Sh10.8b revenue on increased digital transactions
Stanbic profit flattens at Sh13.7 billion as South Sudan subsidiary recovers
New Nation Media Group owner vows to safeguard editorial independence
“In the 2025/2026 financial year, the Universities Fund has already disbursed Sh8.4 billion in scholarship support,” said Wanyonyi.
The disbursement comes two months after the government released funds in early January to support scholarships for financially needy students in universities.
Kenya’s higher education sector has expanded significantly over the last decade, creating both opportunities and funding pressures.
The country now has 83 universities with hundreds of thousands of students.
At the same time, the number of students qualifying for university admission has increased sharply.
Government data shows that the number of students qualifying for university entry rose from 62,581 in 2017 to 270,715 in 2025, representing a 332 per cent increase.
The surge in enrollment has intensified the demand for funding to support tuition, infrastructure and student welfare.
For years, universities have faced financial challenges due to delayed government disbursements and a growing student population, with institutions often struggling to meet operational costs.
The introduction of the Student-Centred Funding Model in 2023 was aimed at addressing these challenges by restructuring how public funds are allocated to universities.
Under the new model, government support is directed to students rather than institutions, with funding levels determined by the learner’s needs.
This marks a shift from the previous system where funds were allocated directly to universities based on enrollment numbers.
So far, 437,648 students have benefited from scholarships under the model, with the government having disbursed more than Sh37 billion to support undergraduate education.
“The model ensures that students from vulnerable backgrounds receive greater support, while those with higher financial capacity receive less government subsidy,” said Wanyonyi.
To qualify for government scholarships, students must be placed in public universities through the Kenya Universities and Colleges Central Placement Service (KUCCPS).
Applicants must also have sat the Kenya Certificate of Secondary Education (KCSE) examination in 2022 or later and apply through the Higher Education Financing (HEF) Portal once placement results are released.
“A new cohort of students who sat the 2025 KCSE examination and attained the minimum university entry grade will be expected to apply for scholarships through the HEF Portal,” said Wanyonyi.
The latest disbursement follows a technical workshop involving registrars and finance officers from public universities aimed at improving management of scholarship funds.
During the meeting, officials were trained on the Universities Fund Institutional Portal, a digital system designed to help institutions submit and verify student data, reconcile funds and improve accountability in the administration of scholarships.
The platform is expected to streamline financial reporting and ensure funds reach the intended beneficiaries.