The Kenyan government has proposed sweeping reforms to the country’s higher education system through the Tertiary Education Placement and Funding Bill, legislation that would merge the Higher Education Loans Board (HELB), the Kenya Universities and Colleges Central Placement Service (KUCCPS), the Universities Fund, and the Technical and Vocational Education and Training (TVET) Funding Board into a single authority.
If passed by Parliament and assented to by the President, the Bill would establish the Tertiary Education Placement and Funding Authority (TEPFA), creating a one-stop institution responsible for university and TVET placement, scholarships, student loans and institutional funding. The proposal represents one of the most significant reforms to Kenya’s higher education funding framework in recent years.
The government says consolidating the four agencies would eliminate duplication of responsibilities, improve coordination and make it easier for students to access placement and financial support through a single system.
Why the Government Wants the Reforms
The proposed changes come as Kenya’s higher education sector continues to face growing financial pressure driven by rising student enrolment, increasing operational costs and funding challenges affecting public universities.
In recent years, the government introduced the Student-Centred Funding Model, under which financial support is allocated based on a student’s level of need rather than providing a uniform subsidy to all learners.
The Bill seeks to build on that model by placing student placement, scholarships, loans and institutional funding under one authority. According to the government, the reforms would improve efficiency, strengthen accountability and enhance oversight of public funds.
What the New Authority Would Do
Under the proposed law, TEPFA would coordinate university and TVET admissions, administer government scholarships and student loans, allocate funding to public institutions, provide career guidance and oversee the financing of tertiary education.
Instead of students dealing separately with HELB for loans and KUCCPS for placement, the government envisions a single institution responsible for coordinating the process.
Officials say the integrated approach would simplify applications while improving service delivery and reducing administrative costs.
Scholarships and Student Loans
The Bill has attracted significant public attention amid reports suggesting Kenya could eventually move towards a funding model that relies more heavily on student loans.
However, the version of the Bill currently available to the public provides for both scholarships and student loans for eligible learners. Whether that balance changes will depend on the final legislation passed by Parliament.
The issue is expected to feature prominently during public participation and parliamentary debate, with students, parents and education stakeholders closely watching how lawmakers address concerns over affordability and access to higher education.
Critics argue that increasing reliance on loans could leave graduates with heavier financial obligations, particularly in a labour market where many young people struggle to secure employment.
Supporters of the reforms, however, say a more sustainable funding framework is necessary to ensure government support reaches deserving students while addressing long-standing financial challenges affecting public universities.
What’s Next?
The Tertiary Education Placement and Funding Bill will now undergo parliamentary scrutiny, committee review and public participation before lawmakers decide whether to approve the proposed reforms.
If enacted into law, the legislation would reshape how students access university and TVET placement, scholarships and student loans while redefining the management of higher education funding in Kenya.
As Parliament prepares to consider the Bill, students, parents, universities and education stakeholders will be watching closely, with the outcome expected to influence the future of higher education financing in Kenya for years to come.
