The Tertiary Education, Placement and Funding Bill, 2026

Background

The Tertiary Education, Placement and Funding Bill, 2026, seeks to reform and streamline the placement and funding of students and trainees in Kenyan tertiary education institutions. By centralizing operations under two newly established bodies, the Bill intends to resolve fragmented systems previously managed by several distinct funding boards.

Key Amendments

The Bill repeals and amends several key statutes to consolidate higher education funding and placement mechanisms:

• Repeal of Cap. 213: Repeals the Higher Education Loans Board Act in its entirety.
• Repeal of Universities Act Provisions (Cap. 210): Repeals Parts VII and VIII, which established the Universities Fund Board.
• Repeal of TVET Act Provisions (Cap. 210A): Repeals Part IX, which established the Technical and Vocational Education and Training Funding Board.
• Amendment of Cap. 22: Amends Section 42 of the Limitation of Actions Act to prevent student loan debt recovery actions from expiring under standard civil limitation periods.

New Obligations

For Loanees:

• Loanees must begin repaying loans, including accrued interest and charges, within one year of completing their studies.
• Loanees in formal employment must disclose their loan status to employers immediately upon employment.
• Loanees in informal employment must establish a repayment plan directly with the Funding Authority.

For Employers:

• Upon employing a loanee, employers must inform the Funding Authority in writing.
• Employers must deduct monthly loan repayments, capped at 25% of the loanee's emoluments, and remit these funds within nine days of the end of each month.

For Tertiary Institutions:

• Public tertiary institutions must submit their course programs, student capacities, and approved costs to the Placement Service at least two months before national assessment results are released.
• All tertiary institutions must submit official admission returns detailing student enrollments within thirty days of the start of the academic year.

Penalties

• Employer Non-Remittance Penalty: Employers who fail to remit deducted loan repayments on time face a penalty equal to 5% of the total unpaid repayment amount for every month it remains outstanding.
• General Penalty: Any offence committed under the Act where no specific penalty is defined is subject to a fine of up to KSh 1 million, imprisonment for up to two years, or both.

Transitional Provisions

• Transfer of Mandates: The newly established Kenya Universities and Colleges Central Placement Service and the Tertiary Education Funding Authority will succeed the Higher Education Loans Management Board, the Universities Fund Board, and the TVET Funding Board.
• Assets and Liabilities: All assets, property, rights, obligations, and pending legal proceedings of the predecessor institutions will be transferred directly to the new Service and Authority.
• Staffing: All individuals employed by the former institutions immediately before the commencement of the Act will transition to become employees of the new Service and Authority.