Universities Fund Releases Ksh4.2 Billion for 400,000 Students

The Universities Fund disbursed Ksh4.2 billion to more than 400,000 continuing undergraduate students at public universities across Kenya in late June 2026, providing critical relief under the country's Student-Centred Funding Model (SCFM). The tranche covers tuition costs for three student cohorts — those admitted in 2023, 2024, and 2025 — and lifts the total 2025/26 financial-year allocation from the National Treasury to Ksh18.4 billion.

Background and Context

Kenya replaced its decades-old capitation grant system with the Student-Centred Funding Model in 2023, fundamentally changing how public money reaches university students. Under the previous arrangement, block grants flowed directly to institutions regardless of individual student need. SCFM redirects that money through individual student accounts, with scholarship and loan amounts calibrated to household income assessed through a means-testing formula administered by the Higher Education Financing (HEF) framework. The transition sparked controversy in its early phases: students at the University of Nairobi, Kenyatta University, and Moi University staged protests over delayed payments, opaque band classifications, and confusion about how much government money they were entitled to.

Ksh4.2 Billion Released Across Three Cohorts

The Universities Fund confirmed that the June 2026 disbursement covers students from the 2023, 2024, and 2025 admission years — the full span of cohorts now enrolled under SCFM. Officials said the payment was timed to coincide with second-semester tuition deadlines at most public universities. The cumulative effect brings the 2025/26 total disbursement to Ksh18.4 billion.

What Comes Next

The government has committed to raise the university scholarship budget to Ksh30.8 billion for the 2026/27 financial year — an increase of more than Ksh12 billion over the current year's total.