The Higher Education Loans Board (HELB) is facing a rising tension of criticism as it opens applications for the 2025/2026 financial year, despite a significant backlog of unpaid disbursements from the previous 2024/2025 academic period.
The situation which has left hundreds of students, particularly those in Technical and Vocational Education and Training (TVET) institutions, in a precarious position, with many unable to sit for exams due to outstanding tuition balances that HELB had initially committed to cover.
Despite public assurances from HELB CEO Geoffrey Monari that the funding process is efficient and empowering students, the reality on the ground paints a different picture. Approved funds, visible in student portals, have not reached institutions or individual bank accounts, leading to forced deferments and withheld academic records. This disconnect has eroded confidence in HELB’s reliability, especially as a new application cycle begins without resolving prior financial commitments.
The current crisis reveals a long-standing challenge for HELB: loan recovery. The board faces a substantial deficit, with KSh 9.5 billion in unpaid loans from beneficiaries. While HELB has recovered KSh 31 billion since its inception, and has supported over 620,000 Kenyans with KSh 65 billion in higher education financing, the high rate of default threatens the sustainability of the fund. HELB has even sought parliamentary approval to freeze bank accounts of over 316,000 loan defaulters, who collectively owe KSh 35 billion, to improve cash flow for current students.
HELB has previously partnered with financial institutions like KCB and Safaricom to automate payouts and introduce mobile wallet solutions as a solution to bursement inefficiencies.
The HELB Mobile Wallet, for instance, allows students to receive upkeep funds directly to their M-PESA accounts, and a mini-app helps manage accounts and loan applications.
However, these technological advancements appear insufficient to overcome the current funding shortfalls and operational challenges. The situation ephasizes the urgent need for HELB to not only streamline its disbursement processes but also to address the underlying issues of financial sustainability and accountability to restore student trust.
