By June Wambui | July 25, 2025
The government education funding crisis in Kenya 2025 has reached a breaking point. This week, the Treasury confirmed it can no longer afford to fully fund free education, including HELB loans, public universities, and secondary schools. This decision marks a shift that will impact thousands of learners across the country.
🎓 Public Universities and the Government Education Funding Crisis Kenya 2025
Kenya’s public universities are facing a severe financial crisis. Many institutions are burdened by debts, with some owing over KSh 4 billion. Due to this shortfall, universities are considering:
- Mass layoffs of staff
- Closure of satellite campuses
- Freezing new academic programs
University Fund officials admit the current model is unsustainable and needs urgent reforms.
💸 HELB Loans and SCFM Uncertainty
The Higher Education Loans Board (HELB) is struggling to meet demand. In 2025, over 163,000 eligible students missed out on HELB loans. Meanwhile, the Student-Centered Funding Model (SCFM) introduced in 2023 remains suspended after the High Court ruled it unconstitutional in December 2024. The appeal is ongoing.
📉 Capitation Cuts in Basic Education
The government also cut funding for secondary schools. Capitation grants dropped from KSh 22,244 to KSh 16,900 per student. Treasury CS John Mbadi said the state could no longer sustain free education. This has forced many schools to scale down essential services and pass costs to parents.
🗣️ Public Response to the Education Crisis
Students and parents are upset. Grace Mwikali, Chair of the University Student Union, called the move “a betrayal of poor students.” Nicholas Maiyo of the Kenya Parents Association warned that sudden budget cuts will severely affect families already struggling with high living costs.
🔍 What’s Next for Education in Kenya?
The government proposes partnerships with the private sector, increasing internal revenue for universities, and targeting aid to the most vulnerable. However, experts warn that unless reforms are rolled out responsibly, thousands of students may drop out or be locked out of education entirely.
Read more: Latest reforms affecting students in Kenya.
📌 Conclusion
The government education funding crisis Kenya 2025 signals the end of fully state-funded education. With budget cuts across all levels, students and families now face higher costs and fewer resources. Kenya must urgently find a balanced solution to protect access to quality education for all.
