Parliament Begins Review of New University Funding Law After Ruto’s Directive Parliament has begun reviewing a raft of education reform Bills that could pave the way for a new university funding framework following President William Ruto’s announcement to make public university and college education free.
The National Assembly Departmental Committee on Education on Wednesday, August 5, launched a consultative review of the proposed legislation alongside the Ministry of Education, with the exercise focusing on aligning the reforms with existing laws and assessing their financial implications before they are tabled in the House.
The committee, chaired by Tinderet MP Julius Melly, met Education Cabinet Secretary Julius Ogamba to scrutinise four proposed Bills, including the Tertiary Education Placement and Funding Bill, which carries the most significant changes to university and TVET funding.
The review comes days after President Ruto announced that the government would introduce legislation to overhaul higher education financing by merging institutions responsible for student funding into a single authority to deliver fully funded university education for eligible learners. At the centre of the proposals is the creation of the Tertiary Education Funding Authority (TEFA), which would merge the Higher Education Loans Board (HELB), the Universities Fund Board and the Technical and Vocational Education and Training Funding Board into one institution.
Under the proposed law, TEFA would oversee student loans, scholarships and other financial support for learners in universities and TVET institutions, with the government saying the move will eliminate duplication and improve efficiency in the management of higher education funds.
The Bill also proposes a unified funding model based on means testing, where the amount of financial support a student receives will depend on factors such as household financial ability, special needs, affirmative action considerations and the cost of the programme being pursued.
The proposed legislation further introduces education loans for minors admitted to tertiary institutions and sets out the procedures for funding applications, loan disbursement, scholarships and recovery of loans, including from beneficiaries living outside Kenya.
Another key proposal seeks to strengthen the role of the Kenya Universities and Colleges Central Placement Service (KUCCPS) by making it the national placement body for all tertiary institutions while separating placement decisions from funding approvals.
If enacted, admission to universities and colleges would be based solely on merit, qualifications and programme choice, while applications for loans and scholarships would be processed independently through the new funding authority.
The committee also reviewed amendments to other education laws, including the Basic Education Act, the Kenya Institute of Curriculum Development Act and the Kenya National Educational Assessment Council Act, with the proposed changes aimed at improving governance, reducing duplication of roles and streamlining appeals on examination matters.
MPs said they would continue consulting stakeholders before finalising their recommendations to the House, with the outcome expected to shape the legal framework for President Ruto’s proposed higher education reforms and the future funding of universities and other tertiary institutions in Kenya.
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