Treasury Cabinet Secretary John Mbadi revealed the plans during a public engagement forum in Kiambu County on Sunday, February 1, 2026.
He said that feedback received from students over the past year had influenced proposals in the Budget Policy Statement (BPS) and the upcoming national budget.
“Our engagement with students is not merely an academic exercise. Even before the budget process advances further, the feedback we have received is already shaping the BPS and the budget for 2026/27,” Mbadi said.
“Our engagement with students is not merely an academic exercise. Even before the budget process advances further, the feedback we have received is already shaping the BPS and the budget for 2026/27,” Mbadi said.
The government intends to increase the Higher Education Loans Board (HELB) allocation from the current Ksh41 billion to Ksh58 billion next year.
This represents a nearly 42 percent increase in funding, targeting improved support for students who rely on loans to finance their education.
Mbadi further confirmed that the scholarship programme would receive a major boost, with allocations rising from Ksh16 billion to Ksh34 billion.
Combined, the funding for loans and scholarships will increase from approximately Ksh57 billion to Ksh92 billion.
“This demonstrates our commitment to investing more resources in educating our youth and making education more affordable,” Mbadi explained.
The Treasury CS also addressed ongoing concerns regarding capitation for secondary schools, acknowledging that government support for high school students has historically been inadequate.
“This demonstrates our commitment to investing more resources in educating our youth and making education more affordable,” Mbadi explained.
The Treasury CS also addressed ongoing concerns regarding capitation for secondary schools, acknowledging that government support for high school students has historically been inadequate.
“Even today’s papers have highlighted insufficient capitation for high school students. We agree, and we are addressing this within the constrained financial space we have,” he said.
Mbadi stressed that the proposed funding increases are part of broader reforms to strengthen financial support systems for students.
Mbadi stressed that the proposed funding increases are part of broader reforms to strengthen financial support systems for students.
“We have taken note of valuable feedback, including calls to reform student loans and financing. This is why we are focusing on course-centered funding and enhancing support for students at all levels,” he said.
The announcement builds on previous government efforts to support university and TVET students. In July 2025, HELB funding was increased from Ksh36 billion to Ksh41 billion for the 2025/26 academic year, with Education Cabinet Secretary Julius Migos Ogamba affirming that the goal was to ensure that no student is left behind due to financial constraints.
“The Government increased HELB’s annual funding from Ksh36 billion to Ksh41 billion to ensure that all students have access to higher education,” Ogamba said at the time.
Under the current Student-Centred Funding Model, HELB and the Universities Fund have already begun disbursing funds to students and institutions, focusing on course-specific financing rather than blanket allocations.
The announcement builds on previous government efforts to support university and TVET students. In July 2025, HELB funding was increased from Ksh36 billion to Ksh41 billion for the 2025/26 academic year, with Education Cabinet Secretary Julius Migos Ogamba affirming that the goal was to ensure that no student is left behind due to financial constraints.
“The Government increased HELB’s annual funding from Ksh36 billion to Ksh41 billion to ensure that all students have access to higher education,” Ogamba said at the time.
Under the current Student-Centred Funding Model, HELB and the Universities Fund have already begun disbursing funds to students and institutions, focusing on course-specific financing rather than blanket allocations.
Mbadi said the government intends to expand these efforts in the 2026/27 budget, pending parliamentary approval.
The proposed increases are seen as a key step toward reducing the cost burden on students and their families, while promoting access to education as a tool for national development.
The government’s plan signals a long-term commitment to investing in Kenya’s youth and addressing challenges that have historically hindered access to higher education.
The proposed increases are seen as a key step toward reducing the cost burden on students and their families, while promoting access to education as a tool for national development.
The government’s plan signals a long-term commitment to investing in Kenya’s youth and addressing challenges that have historically hindered access to higher education.
With the proposed funding boost, thousands of students are expected to benefit from loans and scholarships, potentially easing financial stress for families and contributing to broader social and economic growth.