More than 170,000 students who are awaiting university placement will all get enrolled in public universities.
KUCCPS CEO Agnes Wahome told MPs the public institutions have an available capacity of 194,000.
"We commit that if you give directive we will implement but we ask for protection from Parliament," Wahome said.
She added that almost 173,000 students scored grade C plus and above and are eligible to fall under government sponsorship.
She was speaking when she appeared before Public Investments Committee on Education and Governance.
Committee chair Wanami Wamboka said the process to stop funding students in private universities has started.
"You are covered by the law and we will die with you. We will start working on the systems to ensure that policy is reversed," Wamboka said.
The committee has been keen to do away with the policy that saw government place students in private universities.
The 2023-24 Budget Policy Statement, which spells out priority expenditures for the government, shows that the state has terminated exchequer funding for private universities from the next financial year.
The move, if approved by Parliament, will spell doom for private universities that have been relying on state capitation to stay afloat amid financial turmoil in institutions of higher learning.
"The State Department for Higher Education and Research, through the KUCCPS, should not place new government-sponsored students in private universities," reads in part the report.
It was tabled in March in the National Assembly by the Budget and Appropriations Committee Chairperson Ndindi Nyoro.
The Kenya Universities and Colleges Central Placement Service (KUCCPS) is the institution that is mandated by law to place form four graduates in universities and colleges.
The policy programme was introduced in 2016 as part of the government's strategy to ensure that students who score the university minimum entry grade of C plus are absorbed and funded by the state.
Details show that so far, private universities have received about Sh9 billion since 2016 when the programme started.
In the 2017/2018 financial year, a total of Sh1.56 billion was disbursed towards the program while in the 2020/2021 financial year, a total of Sh2.7 billion was disbursed.
