Professor Simon Gicharu, the founder and chairman of Mount Kenya University (MKU), has told the government to establish an independent agency to administer higher education funding, noting the need for a more sustainable model that does not rely on the Exchequer.
In a proposal to Education Cabinet Secretary Julius Ogamba, Professor Gicharu underlined that Kenya’s university system has grown exponentially over the last 15 years, with the number of institutions increasing to 79. Student enrollment nearly doubled from 361,379 in 2013 to 620,480 in 2022.
The Technical and Vocational Education and Training (TVET) sector has also grown, with enrolment rising from 60,667 in 2018 to almost 460,000 by 2024.
Despite these achievements, Gicharu emphasized that the current funding arrangement is unsustainable since public institutions face underfunding, pending legislation totaling Kshs80 billion, and operational issues. He said that the government’s New Support Model, which links student support to financial need, has encountered legal and administrative challenges, putting further strain on the industry.
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“The rising student enrollment and dwindling Exchequer capacity necessitate a long-term solution. “We must move beyond a grant-based approach and adopt a structured financing model that ensures sustainability,” Gicharu said.
He proposed establishing a National Students Financial Aid Corporation, styled after South Africa’s National Student Financial Aid Scheme (NSFAS). The proposed agency would unite the Universities Fund (UF) with the Higher Education Loans Board (HELB) as recommended by the Presidential Working Party on Education Reform and approved by the Cabinet in January 2025.
Alternative revenue
“The financial body must be able to attract investment, generate alternative revenue, and provide effective debt recovery processes. This will ensure that every student has access to higher education while also safeguarding the financial future of our universities,” he said.
He also proposed moving higher education funding from a grant-based system to a loan-based approach, with performance-based scholarships for priority government programmes.
With the government planning to raise TVET enrolment to two million in the immediate term and university admissions expected to reach 290,950 by 2027, Gicharu emphasized that an independent funding structure is the only viable option for maintaining long-term education stability.
“The time to rethink our approach is now. If we do not act, we risk an education funding crisis that could derail Kenya’s progress in producing a skilled workforce for the future,” he warned.
By Joseph Mambili
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