A looming shift in Kenya’s higher education financing model has ignited concern among students, parents, and policymakers, with fears that thousands of university entrants could graduate burdened by heavy debt.
According to the latest publication by The Standard, more than 200,000 students expected to join universities next month may be directly affected by a controversial government proposal to scrap undergraduate scholarships.
The plan seeks to replace the grants with a loan-based system carrying an interest rate of up to 12 percent, a move critics warn could significantly raise the cost of higher education.
Under the proposed model, students would rely largely on loans to fund their studies, increasing their financial exposure upon graduation.
Estimates suggest that some graduates could leave university with debts exceeding Sh4.2 million, depending on the duration and cost of their courses.
Education stakeholders argue that the shift risks turning higher education into a financial burden rather than an opportunity for social mobility.
Concerns have been raised that students from low-income families could be disproportionately affected, potentially locking them out of university education altogether.
Members of Parliament have also questioned the sustainability of the plan, warning that it may worsen inequality in access to education. Some legislators argue that the move could reverse gains made in expanding university enrollment over the years.
Data highlighted in the report paints a grim picture of graduate outcomes. Only about 7 percent of graduates secure formal employment within the first year, while many take up to five years to find stable work.
This raises doubts about the ability of graduates to repay high-interest loans within reasonable timelines.
The proposed interest rate, significantly higher than previous rates, has further intensified debate, with critics warning it could trap young professionals in long-term debt cycles.