Public universities are set to share Sh4.2 billion in scholarship funds, amid the biggest test for President William Ruto’s new university funding model.
The latest disbursement will support more than 400,000 continuing undergraduate students under the Student-Centred Funding Model (SCFM), pushing total releases in the 2025/26 financial year to Sh18.4 billion. The funds will cater for tuition for students admitted in 2023, 2024 and 2025.
But amid the disbursement, the model is starting to face a strain in funding as it suffers from shortfall in funding.
The release comes days before the opening of the Higher Education Financing (HEF) portal for the 2025 KCSE cohort, who will apply for scholarships and loans.
Already, 270,715 students have qualified for university placement under government sponsorship, up from 246,391 last year, an increase of 24,324 students.
Universities Fund acting CEO Dr Edwin Wanyonyi has urged students to apply for both scholarships and loans to ease household contributions.
“I urge all KUCCPS-placed students to monitor the opening of the HEF portal and submit applications promptly. Students should apply for both scholarships and loans to reduce the burden of household contribution,” he said.
But funding the growing number of students could now emerge as the biggest challenge facing the President’s model.
While the government plans to increase scholarship funding from Sh18.4 billion to Sh30.8 billion in the 2026/27 financial year, an additional Sh12.4 billion, the requirement far outstrips this increment.
Budget estimates tabled in Parliament show universities will need Sh47.36 billion to fully fund students under the model.
This leaves a projected deficit of Sh16.56 billion.
“This gap will increase the pending bill for scholarships from Sh22.26 billion in the 2025/26 financial year to Sh38.52billion in 2026/27 financial year,” the report tabled in parliament reads.
Currently, 437,648 students are funded under the system across three cohorts — 122,634 admitted in 2023, 134,889 in 2024, and 180,125 in 2025. A fourth cohort is expected later this year, further escalating the financial burden.
Higher Education Principal Secretary Beatrice Inyangala has acknowledged that funding for 2025/26 remained at the same level as the previous financial year, despite the admission of the largest cohort in history.
The ministry required Sh29.55 billion to fully support students, but received only Sh16.92 billion — a shortfall of Sh12.63 billion, representing just 57 per cent of the required funding.
This structural mismatch rising enrolment against stagnant or insufficient funding now poses the clearest threat to the viability of the model. [Lewis Nyaundi]
