HELB Disburses Ksh 9.46 Billion to University Students

Of the Ksh 9.46 billion, Ksh 5.76 billion has been set aside for tuition fees, while Ksh 3.7 billion will go directly into students’ pockets as upkeep allowances. The tuition component will be disbursed directly to universities and colleges, ensuring that institutions receive timely payments to cover the cost of learning. On the other hand, the upkeep portion will be deposited into students’ individual accounts, with most beneficiaries expected to receive the funds via M-Pesa.

Speaking during the announcement, CS Ogamba urged students to log into the HELB portal and confirm their individual disbursements. He emphasized that transparency and accountability remain central to HELB’s operations and encouraged beneficiaries to take responsibility for tracking their loan status. This, he said, would not only help students manage their finances better but also ensure that they remain aware of their obligations to repay the loans after graduation.

This latest allocation is not happening in isolation. Just a month earlier, in July 2025, HELB had disbursed an even larger Ksh 26.1 billion to 322,338 university students. That disbursement had come at a time of heightened financial pressure on both students and universities, with many institutions reporting cash flow challenges due to delays in government funding. Together, these successive disbursements reflect the scale of the government’s ongoing efforts to stabilize higher education financing in Kenya.

The government has also increased HELB’s overall budget for the 2025/2026 academic year, raising it from Ksh 36 billion to Ksh 41 billion. Out of this, Ksh 13 billion has already gone into student loans for tuition and upkeep, while another Ksh 16.9 billion was allocated to the Universities Fund to support scholarships under the new student-centered funding model. This marks one of the largest ever allocations to higher education and demonstrates the administration’s recognition of education as a key driver of national development. By ensuring that students can continue their studies without disruption, the government is investing directly in Kenya’s future workforce.

For students, the disbursement comes as a major relief. Across campuses, financial struggles have been widespread, with many young people unable to afford rent, food, or even internet bundles for online learning. Some have had to depend heavily on part-time jobs or family support, which has often proven inadequate. The new allocation of funds will therefore ease these burdens significantly, especially for those from low-income households who rely entirely on HELB for survival. The funds will also reduce cases of students being sent away from lectures or denied access to exams due to unpaid tuition balances.

It is also worth noting that the timing of this disbursement coincides with the admission of first-year students, who began receiving their allocations from August 15, 2025. For many freshmen entering university, this is their first time interacting with HELB, and the assurance that funding will be available from the start of their academic journey is a morale booster. It signals that despite the financial challenges facing the country, education remains a top priority for the state.

CS Ogamba also reminded students that loan applications are still open until August 31, 2025, meaning those who have not yet applied still have a chance to benefit. He called on students not to wait until the last minute but to take advantage of the online system to submit their applications. By meeting the deadline, students can avoid being locked out of future disbursements, which could jeopardize their studies.

Behind these big numbers lies a broader conversation about the sustainability of HELB. The board has in recent years faced liquidity challenges, with a growing loan book and a high default rate among graduates. Despite these struggles, HELB has managed to continue supporting students, largely due to increased government allocations and better recovery strategies. CS Ogamba reiterated the government’s commitment to strengthening HELB, not just as a disbursement body but also as a financially sustainable institution capable of serving future generations.

The broader picture is that Kenya’s higher education system is undergoing transformation under the student-centered funding model. Unlike in the past, where uniform allocations were made, the new approach tailors support based on students’ level of need, ensuring that the most vulnerable get the most help. This has been hailed as a more equitable way of financing education, though it also comes with challenges in implementation. The latest disbursement of Ksh 9.46 billion is therefore not only a financial transaction but also a demonstration of the government’s efforts to operationalize this new funding framework.

For universities, the timely release of tuition fees is expected to stabilize their finances. In the past, delays in HELB disbursements often left institutions struggling to pay staff and run operations smoothly. With the billions now flowing in, universities will be in a better position to manage their budgets, pay lecturers, and invest in facilities that improve the learning environment. This, in turn, benefits the students who rely on these institutions for quality education.

As with all loans, however, the responsibility of repayment remains. CS Ogamba emphasized the need for graduates to embrace a culture of repaying their HELB loans once they secure employment. The revolving nature of the fund means that today’s students benefit from yesterday’s repayments, and tomorrow’s students will rely on today’s graduates honoring their obligations. The government has been enhancing recovery mechanisms, including linking repayments to tax and payroll systems, to ensure compliance. Still, Ogamba appealed to graduates’ sense of patriotism, reminding them that HELB is a shared resource for all Kenyan families.