The impact that psychological chal- lenges have on University students, their families, and society at large, are of worldwide significance. Govern- ment and non-governmental organizations have launched efforts to improve psychosocial well-being in response to this. Since attending college can be stressful, there is rising concern about the psychological chal- lenges that university students face. Examining the cor- relation between university students' self-efficacy and psychosocial well-being is likely to provide an overview on their capacity to handle difficult situations and pre- serve good mental health. Self-determination theory and cognitive behavior theory were incorporated into the study. Correlational study design and descriptive survey were applied. Using purposive and stratified random sampling, a study sample of 395 was selected from 34,009 respondents, which included university students, student counselors, and deans of students from Tharaka University, Meru University of Science and Technology, and Chuka University. A psychologi- cal test instrument for students and an interview sched- ule for student counselors and deans of students were used to gather data. The instruments were piloted in a university outside the research prior to administration. With 382 respondents providing data, the study's re- sponse rate was 96.7%. Data were discussed and sub- jected to both qualitative and quantitative analysis. While quantitative data was examined both descrip- tively and inferentially using the Statistical Package for Social Sciences version 27.0 computer software, quali- tative data was evaluated thematically. Frequency and percentages were employed as descriptive statistics, and Pearson's correlation was used to test hypotheses at the 95% significant level. The results of the study showed a strong and favorable correlation between psy- chological wellness and self-efficacy. Therefore, it is ad- vised that university administration implement meth- ods targeted at boosting students' self-efficacy to im- prove their wellbeing in coordination with other stake- holders. Encourage peer mentoring programs run by students so they can benefit from one other's experi- ences and develop useful problem-solving skills.