Kenya’s private universities have put forward a comprehensive proposal to revamp the university funding model, advocating for a more inclusive approach that ensures students in both public and private institutions receive equitable financial support. The proposal, spearheaded by the National Association of Private Universities in Kenya (NAPUK), calls for significant policy and legal reforms, including the establishment of an independent agency to oversee student financing.
In their proposal, NAPUK suggests merging key agencies, such as the Universities Fund and the Higher Education Loans Board (HELB), into a single, professionalized body— the National Students Financial Aid Corporation (NSFAC). This new entity would not only streamline the funding process but also expand its scope to include tuition fees, books, and upkeep loans for students across all universities.
The proposal aligns with recommendations from the Presidential Working Party on Education Reforms, which was endorsed by the Cabinet on January 21, 2025. However, it comes at a time when the government’s newly introduced university funding model has faced legal setbacks. The High Court recently declared the model illegal and unconstitutional, citing concerns over discrimination. As a result, the government has temporarily reverted to the old Differentiated Unit Cost (DUC) model to support first- and second-year students, despite its own inefficiencies.
NAPUK argues that the funding crisis, which affects over 250,000 university students, can be resolved by reducing reliance on the strained exchequer. Instead, the proposed NSFAC would source funding beyond government allocations, including from donors, private contributions, and innovative revenue-raising mechanisms such as education bonds, unclaimed financial assets, and training levies.
Prof. Simon Gicharu, NAPUK chairman and founder of Mount Kenya University (MKU), emphasized the need for a sustainable model that moves away from a purely social-welfare approach. He advocated for a loan-based system where students receive financial aid that can be recovered in the future, ensuring continued access to education for subsequent generations. Additionally, performance-based scholarships would be offered within the government’s financial capacity and focused on priority national programs.
To enhance efficiency, NAPUK also recommends implementing a robust information management system that maintains a historical profile of students from basic education through university. This would enable more accurate financial assessments and long-term budget planning.
As the government navigates the legal and policy challenges surrounding university funding, NAPUK’s proposal presents a viable alternative that promotes equitable access, sustainability, and reduced dependency on public funds. Whether the government adopts this approach remains to be seen, but it could be the key to resolving Kenya’s higher education funding crisis.
