HELB bows to pressure, reinstates old funding model

The Higher Education Loans Board (HELB) has bowed to student pressure and reinstated the old funding model as it awaits a High Court ruling on the suspension of the Student-Centred Funding Model.

This decision means that first and second year students will now be funded under the Differentiated Unit Cost (DUC) model, similar to their third year comrades.

HELB's Lending Manager King’ori Ndegwa confirmed that the government has already released Sh7 billion, though 180,000 students are yet to receive their funds.

“For the last two weeks, we have been trying to find the best way to make payments, and we have now decided to pay students under the old funding model,” Ndegwa stated.

The move follows sustained pressure from university students, particularly those from the University of Nairobi (UoN), who stormed the HELB offices at Anniversary Towers on Monday.

Frustrated by prolonged loan disbursement delays, the students attempted to force their way into the premises, demanding immediate action.

“We have rent arrears, we can’t afford meals, and our academic progress is at risk. For over a month, we have been taken in circles. They told us they released Sh7 billion over the weekend through mobile money transfer, but we haven’t seen it,” said student leader Rocha Madzao.

According to Francis Omondi, another student leader, their protest was necessary to push HELB into action.

“Today, we occupied HELB offices and refused to leave until we saw the funds. HELB is our lifeline, and these delays are unacceptable,” he said.

The protests follow a seven-day ultimatum issued by UoN students on January 14, warning of mass demonstrations if the government failed to address the delays.

The students lamented that the overdue funds, crucial for tuition, accommodation, and daily sustenance, had left many in financial distress and forced some to miss classes due to economic hardship.

Police quickly intervened to disperse the demonstrators and restrict access to the HELB offices, preventing disruptions within Central Business District (CBD).

Despite the government’s assurances, dissatisfaction among students remains high, with warnings of further protests if the matter is not resolved conclusively.

HELB has attributed the delays to budgetary constraints, increasing demand for financial aid, and difficulties recovering loans from past beneficiaries.

“The delay was caused by the ongoing court case, where a judge prohibited any action on the implementation of the new funding model,” Ndegwa explained.

Government has since appealed the ruling and is awaiting the court’s decision as HELB acknowledged the frustration caused by the delays and assured students that efforts were underway to expedite disbursements.

“We are aware of the frustrations caused by the delays and are working tirelessly to ensure the funds are released as soon as possible,” said Ndegwa.