Kenya’s university scholarship budget is facing a major shortfall. Funding needs for the 2026/2027 financial year have been estimated at Sh47 billion. Yet only Sh30.1 billion has been allocated.

The resulting gap stands at Sh16.9 billion, raising questions about how financial assistance will be distributed as student numbers grow.

The warning was issued by Dr Edwin Wanyonyi, acting chief executive of the Universities Fund. He called for closer cooperation among organisations that support students through scholarships and bursaries.

Funding Must Reach More Students

Speaking at a stakeholders’ meeting in Nairobi on Wednesday, October 28, Wanyonyi said better coordination was needed. Government agencies, private sponsors and charitable organisations were urged to work together.

“Our biggest challenge isn’t mobilizing resources; it is creating impact with the resources we already have,” Wanyonyi said.

He warned that some students receive financial support from several organisations. Others, however, remain underfunded or receive no assistance at all.

“There are students who are overfunded, and yet we have students who are underfunded and others not funded at all,” he said.

The meeting was held under the theme Reaching More Students, Together. Participants were asked to explore ways of reducing duplicated awards and identifying learners whose needs remain unmet.

More Than 600,000 Students Expected to Benefit

Under the Student-Centred Funding Model, the Universities Fund expects about 608,879 scholarship beneficiaries in the 2026/2027 financial year.

The projected number highlights the scale of demand for student support. It also places pressure on the fund to ensure that available resources are distributed fairly.

“Some of the students we are funding are also being funded by your organisations. How do we collaborate?” Wanyonyi asked.

He said every Kenyan who qualifies for university should have an opportunity to pursue higher education. Better coordination, he added, could help extend support to more students.

However, improved coordination alone would not close the funding gap. Additional resources may still be needed if projected scholarship costs remain above the approved allocation.

Secure Data System Proposed

A shared, secure data system was proposed during the meeting. It would help scholarship providers identify students already receiving assistance and those still facing financial difficulties.

The system would also be used to reduce duplication and improve the distribution of awards.

Safeguards would be required to protect students’ personal information. Any shared records would need to comply with the Data Protection Act, 2019.

The Universities Fund’s role in managing student funding data was identified as a possible foundation for the proposed system.

Partnerships Expected to Expand Support

Other proposals included joint campaigns to inform students about available scholarships. Information sharing, resource mobilisation and partnerships were also discussed.

The aim would be to combine the strengths of government programmes, corporate foundations, non-governmental organisations and private sponsors.

Discussions are expected to guide the development of a framework for continued cooperation among scholarship and bursary providers.

For students and their families, the funding shortfall remains a concern. The key challenge will be ensuring that financial assistance reaches those who need it most while addressing the gap between projected costs and available funding.