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Originally published by Kenyans
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August 12, 2026
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Govt Can Deduct Up to 25% of Salary for Loan Repayments Under New Law

Govt Can Deduct Up to 25% of Salary for Loan Repayments Under New Law

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

✨ Key Highlights

A new bill in Kenya proposes to cap monthly student loan deductions for higher education at 25% of a loanee's earnings, aiming to provide full government funding for tertiary education starting September 2026.

  • Monthly student loan deductions will be capped at 25% of earnings.
  • The proposed Tertiary Education Funding Authority (TEFA) will manage the new system, replacing HELB.
  • Under the new system, the government will provide full funding for admitted students, with repayment beginning one year after studies.

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