Thousands of first-year university students are set to receive much-needed financial support as the Higher Education Loans Board (HELB) prepares to begin disbursing loans starting August 15, 2025.
Education Cabinet Secretary Julius Ogamba confirmed the development on Monday, stating that the government had fully facilitated both HELB and the Universities Fund to ensure timely release of funds to students and institutions.
“We are pleased to confirm that both HELB and Universities Fund have been facilitated by the government to disburse funds to universities and students. Indeed, the disbursement of HELB loans for first-year students will begin on August 15,” Ogamba said in a statement.
The disbursement will coincide with the reopening of universities and will be conducted in phases to ensure a smooth transition for students entering higher education for the first time.
Major Boost in HELB Funding
In a major policy shift, the government has increased HELB’s total allocation from KSh 36 billion to KSh 41 billion in the 2025–2026 financial year. Of this amount, KSh 13 billion has been earmarked for tuition support, while KSh 16.9 billion will be channelled through the Universities Fund to finance scholarships under the new student-centered funding model.
The funding is expected to benefit over 201,000 new university students and more than 237,000 trainees joining Technical and Vocational Education and Training (TVET) institutions. An additional 257,000 continuing students will also receive financial support under the revised framework.
Public universities have already begun receiving the first instalment of scholarship funds.
Scholarship Applications Ongoing
The Ministry of Education confirmed that scholarship and loan applications are still open for students who sat for the 2024 Kenya Certificate of Secondary Education (KCSE) and secured placement through the Kenya Universities and Colleges Central Placement Service (KUCCPS).
So far, 129,403 university students and 60,979 TVET trainees have successfully submitted their scholarship and loan applications under the Student-Centered Funding Model (SCFM). For the September intake, 64 percent of university-bound students and 51 percent of TVET applicants have already applied.
Addressing Past Concerns
The latest announcement comes after weeks of concern over possible delays, following a warning by HELB CEO Geoffrey Monari that the agency had only received KSh 26 million for the current year—far below the KSh 48 billion allocated in the previous financial cycle.
To boost its efficiency and improve recovery of loans, HELB has been seeking access to databases from the Kenya Revenue Authority (KRA) and the National Transport and Safety Authority (NTSA) to track defaulters.
The government now says it is committed to removing financial barriers that hinder access to higher education and is confident the new model will provide equitable and timely support to students across the country.
