By Dennis Mulei
Over 160,000 students risk missing higher education in Kenya after the Higher Education Loan Board (HELB) received only Sh26 billion out of the requested Sh48 billion for the 2025/2026 academic year.
The Higher Education Loans Board has confirmed what many feared as it doesn’t have the money to issue new student loans this year.
HELB CEO Geoffrey Monari, confirmed that the board was forced to prioritize upkeep allowances, leaving tuition payments pending for many universities and colleges.
Despite needing Sh48 billion in the last financial year, it received only Sh26 billion forcing over 100,000 University and over 60,000 TVET students to go without full support last year.
The funding gap affects 103,214 university students and 60,274 TVET trainees.
Public institutions are now experiencing cash flow problems, with services and learning activities slowing down.
“We avoided protests for now, but students are desperate. Without urgent funding, this situation will escalate as Universities and TVETs are bleeding,” Monari said.
However, Sh33.2 billion in loans remain non-performing, with rising unemployment and underemployment fueling repayment delays.
“It can take six years for graduates to get decent work,” Monari noted.
To identify capable but noncompliant loan holders, HELB seeks access to KRA and NTSA databases.
“We’re proposing a 3 percent VAT allocation to fund higher education just like Ghana does with 2.5 percent,” Monari added.
Parliament’s Education Committee Chair Julius Melly supports the scheme.
“Parents can save, earn dividends and even borrow from it because it like any other investment fund,” Melly said.
As September’s intake approaches, stakeholders have urged Parliament and the National Treasury to act swiftly.
Monari concluded with a warning to the government.
“Unless funding is secured, we will fail thousands of youth.Kenya’s future depends on access to education,” he told the government.
