Nearly 689,000 university and TVET students could miss out on full government funding in the 2026/27 financial year after budget estimates revealed a combined shortfall of more than Sh72 billion in student loans and scholarships.
The funding gap affects allocations to the Higher Education Loans Board (HELB) and the Universities Fund, which have received only a portion of the money required to support students under the student-centred funding model.
According to the 2026/27 Budget Estimates presented by National Treasury Cabinet Secretary John Mbadi in Parliament, HELB has been allocated Sh56.3 billion against a requirement of Sh112.1 billion to support an estimated 1.38 million students, leaving a deficit of Sh55.8 billion.
The allocation translates to about Sh40,694 per student, against the required Sh81,020 per learner. This creates an average shortfall of Sh40,327 for every student expected to benefit from the programme.
An analysis of the figures shows that the available allocation would only fully support about 695,000 students if they were to receive the full amount required under the funding model introduced in 2023. This means close to half of the projected beneficiaries could fail to receive adequate funding.
The funding pressure comes at a time when universities and TVET institutions are recording increased enrolment and facing rising operational costs, adding pressure on the government’s higher education financing programme.
The Universities Fund has also received less than the amount required to finance scholarships for needy students. The fund has been allocated Sh31.1 billion against a requirement of Sh47.36 billion, creating a funding gap of Sh16.26 billion.
The fund estimates that each beneficiary requires an average of Sh216,072 in support, but the proposed allocation provides only about Sh141,827 per student.