President William Ruto has announced plans for a major overhaul of the Higher Education Loans Board in a bid to address long-standing challenges affecting university and college students across the country.
Speaking during the National Education Conference in Naivasha on Thursday, May 7, the Head of State said the government was working towards creating a more predictable, transparent, and student-centred funding system.
The proposed reforms come amid growing public concern over delays in loan disbursement, rising university costs, and reports that thousands of “ghost students” have been benefiting from government capitation funds.
“We want to sort out HELB so that we can have clarity,” Ruto stated. “I have instructed Monari, together with my team, that we must finally end up with predictable resources.”
The President directed HELB Chief Executive Officer Geofrey Monari and Ministry of Education officials to spearhead the restructuring process and ensure that funding reaches deserving students on time.
According to Ruto, the current funding framework has faced major weaknesses because it focused more on institutions than the direct needs of learners.
“We had very serious challenges with the funding model that was more focused on the institution than the learner, and we have corrected that,” he said.
As part of the reforms, the government plans to digitise the entire student funding system to improve accountability, reduce delays, and enhance transparency in decision-making.
The digitisation plan follows recent revelations that more than 87,000 ghost students may have benefited from capitation funds due to weak verification systems and poor coordination between institutions and government databases.
The new model is expected to integrate student data with digital government platforms to ensure that only verified and actively enrolled learners receive financial support.
The Treasury has already proposed Ksh87.6 billion for scholarships and student loans in the 2026/2027 financial year, signalling the government’s commitment to stabilising higher education financing.
Under the revised funding framework, vulnerable students are expected to receive a higher share of scholarships and loan support through a mixed financing model that combines scholarships, loans, and household contributions.
The reforms are also expected to address delays that have pushed many students into financial distress, forcing some to defer studies or drop out altogether due to lack of fees and upkeep.
Education stakeholders have welcomed the move but warned that successful implementation will require strong digital systems, accountability, and proper coordination between universities and government agencies.
If successfully implemented, the overhaul could mark a major turning point in restoring confidence in Kenya’s higher education funding system.
