The National Assembly Departmental Committee on Education has called for urgent and coordinated action to address persistent funding challenges affecting Kenya's higher education sector.
The MPs proposed a joint engagement involving Parliament, the National Treasury and the Ministry of Education to streamline implementation of the Higher Education Funding Model.
The committee, chaired by Vice Chairperson Eve Obara, made the recommendation after holding separate meetings with officials from the State Department for Higher Education, the Higher Education Loans Board (HELB) and the Universities Fund during a review of the 2025/2026 Budget Implementation Status.
Appearing before the committee, Higher Education Principal Secretary Dr. Beatrice Inyangala said the Higher Education Funding Model is operational but continues to face implementation challenges due to inadequate alignment between the funding framework and budget allocations.
"The funding model is functional. However, the main challenge lies in budget alignment," Dr. Inyangala told Members.
The funding model was introduced to allocate financial support to university students based on their level of need, while ensuring sustainable financing for public universities.
However, implementation has generated debate over affordability, funding adequacy and delays in disbursement of resources to institutions.
MPs observed that the mismatch between policy and budgetary allocations has undermined effective financing of universities and agreed that a joint meeting involving the National Treasury, the Ministry of Education and Parliament would help harmonise the funding framework.
The committee also sought explanations over the growing stock of pending bills owed by public universities.
Dr. Inyangala informed Members that most of the outstanding obligations were inherited over several years, with universities continuing efforts to clear the debts despite increasing interest charges.
According to the State Department for Higher Education, public universities had accumulated pending bills amounting to Sh100.3 billion as of January 2026.
The ministry said institutions are prioritising settlement of pending obligations, suspending stalled development projects and exploring alternative revenue streams to prevent further accumulation of debt.
During a separate session, Members questioned HELB officials on how the board allocates student loans when available funding cannot meet demand from all eligible applicants.
Led by Chief Executive Officer Geoffrey Monari, HELB officials were asked to explain the criteria used in determining beneficiaries during periods of constrained resources.
Legislators emphasised that the allocation process should be fair, transparent and predictable to protect deserving students from being unfairly excluded.
