President William Ruto has announced plans to engage university leaders as the government works towards fully funding all students admitted to universities and colleges, dismissing concerns over how the ambitious education reform will be financed.
Speaking on Tuesday, July 28, during the Huawei ICT Awards at State House, Nairobi, President Ruto said investing in education was a priority and that Kenya could not afford to compromise on developing its human capital.
"I know many people are asking me where you are going to get the money to fund universities. I want to tell them what has been said before, that if you think education is expensive, then try ignorance and you will know which one is more expensive," Ruto said.
The President maintained that education remains the country’s most important investment, arguing that it will play a central role in Kenya’s journey towards becoming a first-world economy.
"My commitment is that it is the single most important thing that we must do. For us to move this country to a first-world status, education is central to this journey. We therefore have no option but to fund our knowledge to get the best human capital," he added.
However, Ruto did not provide details on how the government plans to finance the expanded programme, despite concerns over the financial implications of offering full funding to all eligible students in higher learning institutions.
The President’s remarks come a week after he announced that every student qualifying for admission to universities and colleges would receive full government funding regardless of their financial background, marking a major shift from the current needs-based funding model.
The proposed reforms are contained in the Tertiary Placement and Funding Bill, 2026, which seeks to establish the Tertiary Education Funding Authority (TEFA) as the central agency responsible for financing students in public universities, colleges and Technical and Vocational Education and Training (TVET) institutions.
Under the proposed law, TEFA would take over responsibilities currently handled by the Higher Education Loans Board (HELB), the Universities Fund and the TVET Fund Board, creating a unified system for student financing and loan recovery.
The Bill also proposes replacing the Variable Scholarship and Loan Funding Model introduced in 2023 with a universal funding approach where every eligible student admitted to a public tertiary institution would receive full government support.
President Ruto has called on Parliament to fast-track the required legislative changes to allow the new funding system to begin with the September 2026 university intake.
If implemented, the reforms would represent one of the biggest changes to Kenya’s higher education financing system in decades. However, questions remain over whether the government can sustain the cost of fully funding every eligible university and college student in the long term.