The government has introduced the Tertiary Education Placement and Funding Bill, 2026, which seeks to overhaul Kenya's tertiary education funding landscape by establishing a new Tertiary Education Funding Authority. This Authority would consolidate the functions of the Higher Education Loans Board (HELB), the Universities Fund Board, and the Technical and Vocational Education and Training (TVET) Funding Board.

Key provisions of the Bill include:

  • Creation of a central Authority responsible for managing education loans, scholarships, and funding criteria in consultation with the Cabinet Secretary.
  • Establishment of a dedicated savings scheme allowing parents, guardians, or other individuals to save towards a specific child's tertiary education.
  • Formation of a Tertiary Education Fund to be managed by the Authority, with funding sources including National Assembly allocations, loan repayments, investments, donations, and other lawful revenues.
  • Maintaining the Kenya Universities and Colleges Central Placement Service (KUCCPS) as the body responsible for student placement in public accredited tertiary institutions and career guidance.
  • Eligibility for education loans extended to all Kenyan students admitted to public or private tertiary institutions, including provisions for applications on behalf of minors.
  • Loan repayment to commence within one year after completing studies, with repayment plans tailored for both formal and informal employment sectors.
  • Employers will be mandated to deduct loan repayments from employees’ salaries and remit funds to the Authority, with penalties imposed for late remittances.
  • Penalties for offences under the Bill include fines of up to Sh1 million, imprisonment for up to two years, or both.

The Bill also outlines mechanisms for recovering outstanding loans and associated penalties through civil proceedings, ensuring accountability and sustainability of the funding system.

This legislative proposal reflects the government's intention to streamline tertiary education financing, enhance access to funding, and encourage long-term savings for higher education expenses.