Kenya Scraps Banded Funding for Universal University Capitation in 2026
By Muntasir • Published Aug 07, 2026 • Updated Aug 08, 2026 • Africa Higher Ed News & Policy
President Ruto announced on July 21, 2026 that Kenya will drop the banded university funding model and fund every admitted student in full through direct state capitation, starting September 2026 pending parliamentary approval.
🎓 Applies to all admitted university and college students, regardless of household income
💵 Replaces the 2023 banded model, which Ruto said delivered only 40% of the promised 80% funding
📩 Parents can still contribute voluntarily, but can no longer block access based on inability to pay
⏱️ Needs Parliament to pass amendments before universities reopen in September 2026
Kenya drops banded funding for universal capitation
President William Ruto announced at State House in Nairobi on July 21, 2026 that Kenya will scrap the banded university funding model and replace it with universal state capitation for admitted students, according to Capital FM Kenya and allAfrica . Under the new model, the government funds every academically qualified student who gets a university place in full, without sorting students into income bands first.
The banded model, introduced in 2023, placed each student into a financial band based on household means, which set how much the government paid through scholarships and loans and how much the family had to cover through top-up fees. Ruto acknowledged the model failed to deliver, saying it ended up funding students at around 40% of costs despite an original pledge of 80% coverage.
Why the government made the change
Students who qualified for high-cost programmes such as medicine and engineering were often forced to change courses because their household contribution was unaffordable, even after government support. Ruto said the goal now is for access to depend on academic merit, not family income. Parents may still contribute to their child's education voluntarily, but financial capacity no longer determines whether a student can take up an admission.
What happens next
The government has submitted legislative amendments to anchor the universal capitation model in law, and it has asked Parliament to fast-track approval so the new system is in place before universities reopen in September 2026. Until Parliament passes the amendments, the change is a policy announcement rather than confirmed law, so continuing and incoming students should watch for official communication from the Ministry of Education and the Universities Fund before assuming the new terms apply to their fees.
What to do if you are affected
If you are waiting on university placement or already studying under the banded system, keep monitoring official Ministry of Education and Universities Fund channels for the implementation details, including how existing band placements convert under the new model and whether TVET and KMTC students are covered on the same terms.