Kenya’s higher education sector is facing renewed financial strain after new budget proposals revealed a Sh260 billion funding deficit, placing university programmes, student loans, staff salaries and critical development projects at risk.
The shortfall threatens support for approximately 657,000 students and raises fresh concerns about the sustainability of the funding framework introduced by William Ruto in 2023.
The proposed budget gap has sparked anxiety across public universities, where administrators warn that delayed disbursements could disrupt academic programmes, halt infrastructure projects and worsen salary arrears.
Several institutions are already grappling with heavy debt burdens, forcing them to defer maintenance, suspend research activities and limit student services.
Students are among the most affected, with uncertainty looming over tuition support and upkeep funds.
The Higher Education Loans Board (HELB) remains central to access for needy learners, and any disruption in financing could lead to deferred studies or dropouts.
University officials warn that reduced funding may also translate into larger class sizes, fewer course offerings and diminished academic quality.
The funding crisis has intensified scrutiny of the new university financing model, which categorises students based on household income and shifts the cost burden through a mix of scholarships, loans and family contributions.
Critics argue that the model has struggled with accurate means testing and timely disbursements, leaving vulnerable students exposed.
Education stakeholders are now urging the government to reassess the financing framework and prioritise sustainable funding mechanisms to stabilise institutions.
Without urgent intervention, analysts warn the financial strain could erode academic standards and limit access to higher education, undermining the sector’s role in national development and workforce preparation.