The National Treasury has approved the release of Sh5.2 billion for enhanced salaries and house allowances for lecturers.
They have been on strike for three weeks since November 1, 2017, demanding higher pay.
Principal Secretary Kamau Thugge granted the Ministry of Education approval to use the funds, a move that could signal the end of the strike that had paralysed learning in 31 public universities.
In a letter to Higher Education Principal Secretary Colleta Suda, Mr Thugge said the funds will be included in the supplementary estimates number 2 for 2017/2018 financial year.
Kenyatta University, Masinde Muliro University of Science and Technology and Jomo Kenyatta University of Agriculture and Technology have been closed due to the strike.