Loan confusion hits universities despite Sh27.9 billion disbursement
Education
By
Mike Kihaki
| Sep 17, 2025
Confusion has hit universities and technical colleges after some students missed out on Higher Education Loans Board (HELB) allocations, despite government assurances that funding remains intact.
HELB Chief Executive Officer Geoffrey Monari on Wednesday, September 17, said the board has disbursed Sh20 billion to universities and Sh7.9 billion to technical institutions under the 2024–2025 cycle.
He explained that supplementary allocations will cover any shortfall in the second semester.
“Currently, we don’t have any problem. As we go into the second semester, we will have already gotten money through supplementary allocations to cater for any shortfall, because we now know the number of students. So we are on track,” said Monari.
However, students and parents say institutions are demanding proof of fee payment before registration, leaving many stranded.
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“They are afraid to go to class if they don’t have a fee card. At the beginning of this week, we were supposed to register, but we were told without money, our children cannot attend the course,” noted Moses Maina, a parent of a student at the University of Nairobi.
Jane Atieno, a first-year student, noted she applied for HELB but received no funds.
“I applied for HELB in my first academic year, but I didn’t receive the loan. The portal is closing in one week, and this will force me to either be discontinued or take drastic steps,” said Atieno.
Education Cabinet Secretary Julius Ogamba said the government will not allow students to be locked out of classes or exams due to delayed funds.
“As a government, we are doing everything possible to ensure that our students who come to universities are supported. No student who deserves to be in the university and who needs to be in the university will miss out,” noted Ogamba.
Monari said HELB has engaged vice chancellors to ensure institutions accommodate affected students until payments are made.
He added that the board has scrapped banding in loan allocations and is exploring new financing models, including a social bond to securitise repayments.
Repayment remains a hurdle. Monari said only 67 per cent of past beneficiaries are repaying their loans, while 33 per cent are in default.
“Every shilling matters. Last year, we collected Sh5.2 billion, which enabled us to fund 49,000 university students and 114,000 TVET trainees,” added Monari.