Parents, guardians and individuals could be allowed to deposit money into a proposed government-backed savings scheme for future tertiary education under a Bill seeking to overhaul Kenya’s student funding system.
The Tertiary Education, Placement and Funding Bill, 2026 proposes to give the Tertiary Education Fund a deposit-taking mandate, allowing it to establish a savings scheme or product for people saving towards tertiary education for themselves or on behalf of a child.
The proposed Tertiary Education Fund would be managed by the Tertiary Education Fund Authority.
Under Clause 30(i) of the Bill, the Authority would have the power to establish a savings scheme or product to receive deposits from any person for the purpose of saving towards tertiary education in respect of a specific child.
Tertiary Education Fund to Receive Savings for College and University Fees
“In performance of the functions under section 29, the authority shall have powers to establish a savings scheme or product to receive deposits from any person for the purpose of saving towards tertiary education in respect of a specific child,” reads part of the bill.
The broader proposal would allow parents and guardians to begin setting aside money for a child’s future education, while individuals could also save towards their own studies.
This means a family could potentially start saving before a child joins a TVET institution, college or university, instead of relying entirely on loans, scholarships or other forms of funding once the student is admitted.
The Bill does not state how the savings scheme would operate, including the minimum amount that could be deposited, whether the savings would earn interest or returns, or the conditions for withdrawing the money.
What It Means for Parents and Families
If the Bill becomes law, parents and guardians could have a formal avenue to save for a child’s future tertiary education through a scheme established by the Tertiary Education Fund Authority.
The proposal would allow families to begin preparing for the cost of TVET, college, and university education before a student is ready to enroll.
It would also introduce an education savings component alongside the existing model of loans and other forms of student financing.
Fund to Raise Money From Multiple Sources
Beyond receiving education savings deposits, the proposed Authority would be allowed to mobilize money from several sources.
Under Clause 30(g), the Authority would have the power to raise funds through Treasury bills, bonds, concessional loans, government grants, savings schemes, unit trusts, commercial partners, loan repayments and other lawful sources.
It could also mobilize private capital and non-traditional sources of education financing, including domestic pension funds, collective investment schemes, sovereign wealth funds and climate finance.
The Bill further allows the Authority to receive gifts, grants, donations, endowments and other money lawfully received.
New Framework for Student Funding
The Bill seeks to change the current system of tertiary education placement and funding by establishing the Tertiary Education Fund and the Tertiary Education Fund Authority.
The proposed framework would cover student loans and other forms of financial support for students and trainees.
The Bill also provides for applications for loans by students and trainees, obligations of loan beneficiaries, employers’ responsibilities and the recovery of education loans.
Under Clause 48, students and trainees would apply for loans under the proposed law, while Clause 49 sets out the obligations of loan beneficiaries. Clause 50 provides for employers’ obligations, while Clause 51 deals with the recovery of education loans.
HELB Act Set for Repeal
The proposed law would also repeal the Higher Education Loans Board Act, which currently provides the legal framework for HELB.
According to the Bill, Clause 64 provides for the repeal of the Higher Education Loans Board Act and various sections of other laws.
The Bill further provides for the succession of former institutions and the transfer of their property, assets and liabilities.
Clause 65 provides for successors of former institutions, while Clause 66 deals with the transfer of property, assets and liabilities. Clause 67 provides for the transfer of staff from former institutions to the proposed Service and Authority.
The changes would therefore introduce a new structure for managing tertiary education placement, student funding and education savings.
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