• On 30 July 2025, the governemt through the Ministry of Education implemented a new higher education funding model, aiming to lower university fees for students, effective 1 September 2025. 
  • This bold step was taken by the government to ensure that affordability, accessibility, and quality university education are available to everyone while maintaining the financial sustainability of the higher learning institutions.

On 30 July 2025, the governemt through the Ministry of Education implemented a new higher education funding model, aiming to lower university fees for students, effective 1 September 2025. 

This bold step was taken by the government to ensure that affordability, accessibility, and quality university education is available to everyone while maintaining the financial sustainability of the higher learning institutions.

The new model is replacing the current Differentiated Unit Cost (DUC) system that provides financial aid directly to students based on individual needs rather than through fixed funding to institutions. 

The new model comes as a package of government scholarships, students’ loans, as well as household contributions to cover the student’s tuition costs.

In the current model, universities have been receiving funds based on student enrollment numbers. The new one will fund students directly through scholarships and loans, and the household contribution will meet the remaining cost. 

This model emphasises the assessment of individual student financial needs, which will determine the extent to which the student will receive aid through scholarships and loans. 

The government, through the Ministry of Education, annulled the full cost of degree programs communicated earlier and promised to work with universities to revise the fee structures of every program in alignment with the new funding model.

According to the government of Kenya, the new model will lower barriers to accessing higher education, especially for students from needy families. The government is also hopeful that there will be an increase in student applications. 

Although the implemented model lifts the burden off the students’ shoulders, it leaves the sustainability of universities at stake. Universities will be forced to adapt to new self-funding mechanisms, such as seeking alternative revenue streams. 

Both new students joining universities in September 2025 and the continuing students admitted from September 2023 will benefit from the new model, which will be rolled out in phases. 

All in all, the government has committed itself to the new university funding model, which incorporates government scholarships, student loans and private sector partnerships.