Postgraduate students will not be allowed to transfer credits to other institutions, forcing them to complete studies in one university.
Only certificate, diploma and degree programme credits will be transferred, in a new step by the Kenya National Qualification Framework Authority to address quality gaps.
Postgraduate diploma, master's and doctorate degree credits will not be transferred.
The regulations that have also phased out higher national diploma were gazetted last week by Education secretary Amina Mohamed.
The higher national diploma was equated to a degree programme and used to take more than five years to complete.
"The authority shall approve a credit transfer made in accordance with the regulations and credits transferred will not be more than 49 per cent," states the regulation.
In 2016, the Commission for University Education (CUE) revoked doctorate of philosophy degrees awarded to five students by Kisii University after it emerged that the students were admitted into master's programmes from other local universities irregularly.
"Student admissions were highly irregular based on a postgraduate credit transfer policy that is not provided for in either the Kisii University Statutes or the Universities Standards and Guidelines, 2014," said the Commission.
An audit on universities last year by the CUE revealed that only eight universities had complied with the regulatory requirements on credit transfer.
It also revealed that some the universities granted more than 49 per cent credit transfers in contravention of the minimum standards.