HELB Funding Boost: KSh 41 Billion Allocated for 2025/2026 to Support Kenyan Students
In a move set to ease the financial burden on thousands of Kenyan students, the government has announced a significant increase in funding for the Higher Education Loans Board (HELB), raising its annual allocation from KSh 36 billion to KSh 41 billion for the 2025/2026 academic year. The announcement, made by Education Cabinet Secretary Julius Ogamba on July 31, 2025, comes as a lifeline for students grappling with rising tuition fees and economic challenges, ensuring smoother access to higher education.
The increased funding will benefit over 257,523 continuing students and an estimated 64% of university applicants and 51% of Technical and Vocational Education and Training (TVET) trainees for the September 2025 intake. Of the KSh 41 billion, KSh 13 billion is earmarked for student tuition and upkeep, while KSh 16.9 billion will be channeled through the Universities Fund to support scholarships for qualifying students. First-year students can expect loan disbursements to begin on August 15, 2025, aligning with university opening dates, according to Ogamba.
This boost follows months of concern over HELB’s financial constraints, with the agency previously reporting a KSh 13.7 billion deficit for the 2024/2025 financial year. HELB CEO Geoffrey Monari had warned that inadequate funding left over 163,000 eligible students without loans, with 103,214 university students and 60,274 TVET trainees affected. “The shortfall meant some students received only upkeep funds, while tuition went unpaid,” Monari told the National Assembly’s Education Committee in July 2025, highlighting the strain on universities and TVETs struggling to operate without remitted fees.
The funding increase is part of the government’s commitment to the Student-Centred Funding Model (SCFM), introduced in 2023 to allocate loans and scholarships based on students’ socioeconomic needs. Under SCFM, students are categorized into vulnerable, extremely needy, needy, and less needy brackets, ensuring equitable support. However, the model faced criticism after a December 2024 High Court ruling declared it unconstitutional, prompting HELB to revert to the older Differentiated Unit Cost model for first- and second-year students while an appeal is pending.
Despite the funding boost, challenges persist. Posts on X reflect mixed sentiments, with some students celebrating the timely announcement, while others express frustration over past delays in disbursements, which have forced some to defer studies or drop out. “This is good news, but HELB needs to fix the portal glitches and ensure funds reach students on time,” wrote one user. Digital illiteracy, poor internet connectivity in rural areas, and lack of public awareness about application processes remain barriers, with calls for county-level sensitization campaigns to reach underserved communities.
HELB has also proposed long-term reforms to address chronic underfunding, including a 3% education levy on Value Added Tax, modeled after Ghana’s system, and a voluntary parental savings scheme to reduce reliance on government loans. Additionally, the agency is pushing for access to Kenya Revenue Authority and National Transport and Safety Authority data to trace loan defaulters, as over 316,000 borrowers owe billions, limiting funds for new students.
For now, the KSh 41 billion injection offers hope for Kenya’s youth. “This funding means I can focus on my studies without worrying about fees,” said a second-year student at the University of Nairobi. As the academic year approaches, students are urged to apply promptly via HELB’s online portal, mobile app, or USSD code *642# to secure their share of the funds.