The Kenyan government has introduced the Tertiary Education Placement and Funding Bill 2026, which seeks to overhaul the current tertiary education financing system by replacing the Higher Education Loans Board (HELB) with a new entity called the Tertiary Education Funding Authority (TEFA).
Key Provisions of the Bill
- The Bill proposes merging HELB, the Universities Fund, and the Technical and Vocational Education and Training (TVET) Funding Board into TEFA, a single authority responsible for managing tertiary education funds.
- TEFA will establish a savings scheme allowing parents and individuals to deposit money toward a child's future university or TVET education, promoting early financial planning.
- Students admitted to public universities or colleges could receive up to 100% funding for their education costs under the new model.
- Loan repayments would begin within one year of completing studies or upon employment, with deductions capped at 25% of the beneficiary's monthly salary. Employers will be mandated to facilitate these repayments.
- Funding sources for TEFA will include parliamentary allocations, investment income, loan repayments, government grants, pension funds, sovereign wealth funds, and other lawful sources.
Context and Government Commitment
This legislative move follows President William Ruto's July 2026 declaration that all students admitted to public universities or colleges will receive full government funding regardless of their background, emphasizing merit-based access to education.
The Bill aims to reduce reliance on loans at admission by encouraging savings and ensuring sustainable funding mechanisms for tertiary education in Kenya.
