Education stakeholders in Kenya are demanding changes to the proposed Tertiary Education Placement and Funding Bill, 2026, with a focus on making student loans interest-free. The Muslim Education Council has urged Parliament to remove provisions allowing interest to be imposed on student loans, suggesting that learners should only repay the amount borrowed, plus any clearly stated administrative costs. This call aims to ease the burden on students, particularly those from low-income households.
The proposals were presented to the National Assembly Education Committee during public participation sessions. Stakeholders, including the Muslim Education Council, Kuppet, and the Elimu Bora Working Group, are seeking a more supportive financing framework. They argue that the current loan system, which charges undergraduate and TVET beneficiaries a 4% interest each year on their outstanding balances, plus a Sh1,000 annual ledger fee, is a barrier to accessing education.
The concern over loan charges is driven by a growing number of borrowers who have fallen behind on repayments. In June 2025, 256,000 borrowers were listed as defaulters, but this figure rose to 380,530 just five months later. Most applicants for loans through the Higher Education Loans Board are from low-income households and rely on the funds to meet tuition, accommodation, and upkeep expenses.
Kuppet secretary-general Akello Misori expressed concerns that the proposed funding structure lacks a secure, ring-fenced revenue source. He warned that this could lead to a situation where students who have already begun their programs may not receive the money needed to finish their education. Misori emphasized that there is no guarantee that continuing students will be funded to completion.
The Elimu Bora Working Group has proposed that the government meet the full cost of tertiary education for students who qualify for support. The group suggests that assistance be provided through a mix of grants, scholarships, and loans, with the form of support determined by the student's needs and the nature of the expense. They argue that full funding would cover tuition, accommodation, meals, learning materials, transport, and other approved expenses.
Another group, Mau Mau Children Post-Colonial Elites (MMV Associates CLG), has called for changes to the six education Bills to ensure they promote access to education while addressing the changing needs of society. The organization emphasizes that education should remain accessible, affordable, fair, and transparent, while also preparing learners for employment and supporting competency-based education.
Stakeholders are urging Parliament to consider their proposals and amend the Bill to ensure that education is a national investment and a constitutional right, rather than merely an individual economic commodity. The National Assembly Education Committee is expected to review the proposals and make decisions on the Tertiary Education Placement and Funding Bill, 2026.
Key points
- Education stakeholders are demanding interest-free student loans and guaranteed funding for tertiary education under a new financing framework.
- The proposed funding structure lacks a secure revenue source, potentially leaving students without necessary funds to complete their education.
- Stakeholders propose a mix of grants, scholarships, and loans to support students, with a focus on accessibility and affordability.
