Full funding plan: Govt to replace HELB, university and TVET funds with new body
This story has significance for readers across Kenya and beyond.
- The government tabled the Tertiary Education Placement and Funding Bill 2026, proposing to dissolve HELB and two other bodies into a single new authority
- The proposed Tertiary Education Funding Authority would run a savings scheme allowing parents to set aside money for a child's future university or TVET education
- Students would receive up to 100% funding under the new model, with loan repayments capped at 25% of salary after securing employment
The government has introduced a Bill in Parliament that would fundamentally restructure how Kenya finances tertiary education, replacing the Higher Education Loans Board (HELB) with a new institution empowered to accept savings deposits from parents and individuals planning ahead for a child's education costs.
The Tertiary Education Placement and Funding Bill 2026, sponsored by National Assembly Majority Leader Kimani Ichung'wah, proposes merging HELB, the Universities Fund, and the Technical and Vocational Education and Training (TVET) Funding Board into one body called the Tertiary Education Funding Authority (TEFA).
What the Bill Proposes
Clause 30(i) of the Bill grants TEFA the power to create a savings scheme allowing any person to deposit money towards tertiary education for a specific child.
The provision would give families a formal mechanism to accumulate funds for university, college, or TVET costs years before a student is ready to enrol, reducing dependence on loans at the point of admission.
Under the proposed framework, students could receive up to 100% of their education costs covered, with repayment commencing within one year of completing studies or shortly after securing employment.
Employers would be required to notify the authority, deduct loan instalments from salaries, and remit the funds within set deadlines, with deductions capped at 25% of a beneficiary's monthly pay.
The proposed Tertiary Education Fund would draw financing from National Assembly allocations, investment income, loan repayments, Treasury bills, bonds, concessional loans, government grants, domestic pension funds, collective investment schemes, sovereign wealth funds, and climate finance, among other lawful sources.
Funding Gaps and Ruto's Promise
The Bill follows President William Ruto's announcement on 21 July 2026 that every student admitted to a public university or college would receive full government funding.
During a speech at State House, Ruto said that going forward, any student who has passed and is placed in a college or university, each of them will get full funding for their education.
He noted that it will not matter the background of any child in Kenya, but how good they are," Ruto said at State House.
Source: TUKO.co.ke
Reporting originally appeared via TUKO. Read the full source for additional context.