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How HELB’s New Funding Rules Will Reshape Student Loans in Kenya

24/08/2025
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How HELB’s New Funding Rules Will Reshape Student Loans in Kenya
How HELB’s New Funding Rules Will Reshape Student Loans in Kenya FILE | Courtesy
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ByClaire Dubois

Key Take-aways from this Story

    • HELB ends allocation of funds through student bands.

    • New model bases funding on programme cost and financial need.

    • MTI tool used to assess individual student circumstances.

    • Some upkeep allocations reduced due to lower tuition fees.

    • Government recently disbursed Ksh9.4 billion to support students.

 

 

HELB confirmed that students will no longer be grouped into bands when receiving financial support. Instead, allocations will now be determined by two key factors:

 

 

  • -The actual cost of the student’s academic programme.

 

  • -The individual’s assessed level of financial need.

 

 

 

 

The cost of each programme is established by data collected directly from universities and colleges, ensuring real-time accuracy.

 

 

 

 

 

Use of the Means Testing Instrument (MTI)

 

 

 

To determine financial need, HELB will rely on the Means Testing Instrument (MTI), a scientific method that uses proxy indicators to measure a student’s socio-economic situation. This will ensure allocations are fair and aligned with individual financial realities.

 

 

 

 

 

Impact on Student Fees and Upkeep

 

 

 

HELB explained that the total fees payable by students will now be provided by their respective institutions. Students are urged to check their institution’s websites for exact details.

 

 

 

 

 

For upkeep support, each student will receive an amount unique to their financial need assessment outcome. This marks a shift from the standardised upkeep allocation model previously in place.

 

 

 

 

 

 

Reduction in Upkeep Allocations for Some Students

 

 

 

HELB also addressed concerns regarding reduced upkeep allocations for certain students. According to the loans board, this reduction is directly tied to the government’s move to lower overall university programme costs. With tuition fees reduced, upkeep allocations have been adjusted to reflect the new structure.

 

 

 

Recent Government Disbursement

 

 

 

This announcement follows the government’s release of Ksh9.4 billion to support 309,178 university students. Education Cabinet Secretary Julius Ogamba confirmed that Ksh5.7 billion would go toward tuition fees, while the balance would be used for upkeep support.

 

 

 

HELB has urged students to log into the HELB portal to confirm their applications and access their specific allocation details.

 

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