Students who will receive higher education funding loans from September could face up to 25 per cent deductions on their salaries when they start paying off the loans under a new Tertiary Education, Placement and Funding Bill, 2026.

🇰🇪 Breaking It Down

The proposal contained in Clause 49(4) of the Bill caps student loan deductions at 25 per cent of a loanee's earnings, setting a limit on the amount that can be recovered from graduates in employment.

According to the proposals, the Tertiary Education Funding Authority (TEFA), which is set to replace the Higher Education Loans Board (HELB), shall deduct not more than 25 per cent of a loanee's emoluments when recovering an education loan.

"In making deductions for loan repayment, the Authority shall deduct not more than twenty five percent of the loanee's emoluments," the bill states.

📌 What You Need to Know

The move comes as the government plans to offer full funding for students in tertiary education, including universities and colleges, starting in September 2026.

According to President William Ruto, all students who qualify for admission to universities and colleges will henceforth receive full government funding for their higher education.

The proposal suggests that in the future, students will not have to pay any money when joining universities , and the government will cover the tuition and accommodation costs for each student during their period of study through a loan.

Beneficiaries will begin repaying their education loans within one year of completing their studies, together with any accrued interest and other applicable charges.

Graduates in formal employment would be required to disclose their loan status to their employers when taking up employment.

However, under the bill, a loanee shall, within one year of completion of studies, commence repaying the loan together with any accrued interest and any other charges.

📰 Source: Kenyans.co.ke