Government of Kenya has announced a major boost to the Higher Education Loans Board (HELB) injecting an additional KSh5 billion into the fund which raises the total HELB allocation for the 2025/2026 academic year to KSh41 billion, a step expected to ease the financial burden on thousands of university and TVET students across the country.
Deputy President Kithure Kindiki, speaking during a graduation ceremony in Laikipia East Constituency on Saturday, pointed out the government’s commitment to transforming the education sector.
Deputy President Kithure Kindiki
“The Government continues to prioritise the provision of quality, relevant and affordable education for all the children of Kenya and equipping them with skills to prepare them for the ever-changing society,” Kindiki stated.
The enhanced funding comes as a timely intervention following a critical shortfall reported earlier by HELB CEO Geoffrey Monari, who noted that the agency had received only KSh26 million this year, compared to KSh48 billion in the previous financial year. This funding gap left over 100,000 university students and 60,000 TVET trainees without financial support in the 2024/2025 academic year.
The newly allocated funds will support students under the Higher Education Financing (HEF) model, which was introduced in 2023. The model categorizes students into five bands based on financial need determined by a Means Testing Instrument (MTI) that considers household income, dependents, and geographical location. Students in Band 1, the most financially vulnerable will receive a 70% scholarship, a 25% HELB loan, and an upkeep loan of KSh60,000.
Out of the total HELB allocation, KSh13 billion will go directly to student tuition and upkeep, while KSh16.9 billion is allocated for the Universities Fund to provide scholarships.
HELB loan disbursements for first-year students are set to begin on August 15, aligning with the reopening of universities. Applications for scholarships are open for 2024 KCSE candidates placed by KUCCPS, with the application window running from July 31 to August 14, 2025 via the HEF portal.
Kindiki also emphasized other extensive reforms in the education sector, including a 15% to 40% reduction in university fees, depending on the course. He highlighted growth in the TVET sector, where enrollment has surged from 297,000 in 2022 to over 700,000 in 2025 attributed to better infrastructure, modern training equipment, and a flexible, modular curriculum.
“I was pleased to join more than 500 graduands in Laikipia East who have acquired skills from TVETs. This is how we ensure no skilled Kenyan is left behind simply because they lack formal papers,” Kindiki said, referencing the Recognition of Prior Learning (RPL) system.
To support this growth, the government has constructed 23,000 classrooms, initiated 1,600 science laboratories, and is on course to recruit 100,000 teachers by the end of the year, with 76,000 already hired and 24,000 more on the way.
