Tinderet MP Julius Melly, during public participation, in BungomaThey told the National Assembly Education Committee the provision in the Tertiary Education and Funding Bill, 2026, was punitive, arguing many graduates take longer than a year to secure employment.
The proposal wants students who benefit from education funding to start repayment within the first year of graduation.
The stakeholders are, however, proposing an amendment that will see repayment begin only after beneficiaries secure formal or informal employment.
They spoke when the committee, chaired by Tindiret MP Julius Melly, conducted public participation on six education-related bills in Bungoma and Busia counties.
“Clause 49(1) should be reviewed to read, ‘Within one year of being employed, including where there is proof of gainful employment',” Kibabii University DVC academics and student affairs Joseph Ogendo told the committee.
The stakeholders also opposed a clause allowing the authority to deduct up to 25 per cent of a loanee's emoluments towards repayment.
They proposed that deductions be capped at 10 per cent to prevent beneficiaries from being left with inadequate income to meet their basic needs.
“In reference to clause 49(4), this proposal is excessively punitive, and Kibu proposes that the authority should not deduct more than 10 per cent of the loanee’s emoluments,” Ogendo said.
At Alupe University in Busia, stakeholders further called for student loans to be made interest-free, saying most beneficiaries come from low-income households.
They argued charging interest would make it difficult for beneficiaries to clear their loans, particularly those struggling to secure stable employment after graduation.
“Make students' loans interest-free to help facilitate and accelerate payment. The current loan interest of four per cent per annum on outstanding balance in addition to a Sh1,000 ledge fee, is detrimental,” youth representative Harriet Opoma told the committee.
“Most students who apply for these study loans come from low-income households and rely on the financial support to cover tuition, accommodation and upkeep.”
The stakeholders also raised concerns over the fate of non-teaching staff, with the Kenya Union of Secondary Schools calling for them to be returned under the Ministry of Education, as was previously the case.
They cited underpayment, salary delays and poor working conditions as some of the challenges facing the workers.
The status of Junior Schools also featured prominently, with Kuppet calling for their autonomy while Knut opposed the proposal.
Speaking to the media after the exercise, Melly said the committee would scrutinise the views gathered from the public before making recommendations to the House.
“Today we have been to Kibabii and Alupe universities in Bungoma and Busia counties respectively. We have had very good sessions where stakeholders have given us their views and reservations on the Bills. After completing the exercise across all the counties, we will sit and deliberate on all the proposals and consider them in the Bill,” the chairperson told the media.
INSTANT ANALYSIS
The proposal contained in the Tertiary Education and Funding Bill, 2026 wants students who benefit from education funding to start repayment within the first year of graduation.