Abstract: Higher education policies have been rated as determinants of students’ participation in public universities. These policies often shape the financial obligations imposed on students, thereby influencing their ability to access and sustain university education. Rigid or poorly structured fee payment systems disproportionately affect students from low-income backgrounds, limiting their chances of enrollment and completion. This study examined the influence of fees payment modalities on students’ participation in university education at the University of Nairobi. The study was guided by Equity Theory. Adescriptive survey research design was adopted, targeting a population of 850 undergraduate students across various faculties. Using Yamane’s formula (1967), a sample of 393 respondents were selected. Data were collected through a structured questionnaire and interviews. Validity was ensured through expert review, while reliability was established using Cronbach’s alpha (α ≥ 0.70) for internal consistency. Quantitative data were analyzed using descriptive and inferential statistics, whereas qualitative data were subjected to thematic analysis. Ethical considerations, including informed consent, confidentiality, and voluntary participation, were strictly observed. Findings revealed that inflexible payment policies, unclear communication of payment options, and punitive penalty structures significantly hinder students’ participation, with about 86% of respondents indicating financial stress or access challenges. Equally, flexible payment modalities, installment plans, and financial guidance positively influenced retention and enrollment decisions. The study concludes that student-centered and transparent payment systems are critical to enhancing access, equity, and participation. Recommendations include the adoption of flexible installment plans, improved communication of payment options, financial counseling services, and periodic review of penalty policies to reduce undue financial burden.