University Students Continue Applying for HELB Loans as Kenya Prepares for New Higher Education Funding System

Kenya university funding model 2026

Thousands of students joining universities in Kenya this year are continuing to submit applications for government loans and scholarships even as the country prepares to introduce a new higher education funding system.

The transition comes at a critical time, with first-year students expected to report to universities from the second half of August through early September. However, Parliament has not yet approved the proposed legislation that will establish a completely new financing framework for higher education.

This has created uncertainty among students, parents and universities, many of whom are eager to understand whether the current funding arrangement or the proposed universal model will apply to the 2026/2027 academic year.

Current HELB and Scholarship Applications Remain Open

Government officials have assured students that applications for financial assistance have not been suspended. Learners can still apply for Higher Education Loans Board (HELB) loans and government scholarships under the existing legal framework.

According to HELB Chief Executive Officer Geoffrey Monari, the agency has no legal authority to implement the proposed reforms until Parliament passes the relevant legislation and the President signs it into law.

He explained that all funding applications are currently being processed using the existing regulations, meaning students should not delay submitting their applications while waiting for the proposed changes.

The same position has been echoed by the Universities Fund, which has confirmed that scholarship applications are also being processed normally. Officials say there is no legal gap because the current laws remain fully operational until a new Act replaces them.

New Funding Model Awaits Parliamentary Approval

President William Ruto recently announced that the government’s final proposal on university funding has already been submitted to Parliament for consideration.

The proposed reforms are contained in the Tertiary Education Placement and Funding Bill, 2026, which seeks to overhaul how higher education is financed in Kenya.

If approved, the Bill will replace three existing institutions with a single agency known as the Tertiary Education Funding Authority (TEFA).

The institutions expected to be merged include:

• Higher Education Loans Board (HELB)
• Universities Fund (UF)
• TVET Funding Board (TVETFB)

The new authority will oversee government scholarships, student loans and funding for universities, colleges and Technical and Vocational Education and Training (TVET) institutions under one unified system.

Why the Government Wants to Introduce a New Funding Model

The proposed reforms are intended to simplify higher education financing while ensuring that more students can access university education regardless of their financial background.

Under the planned system, eligible learners admitted to accredited public and private universities, colleges and TVET institutions will be able to apply for government education loans and scholarships through one central authority.

The government also hopes that consolidating the three agencies into a single institution will improve efficiency, reduce duplication of functions and strengthen accountability in the management of public education funds.

Universities Set to Receive First-Year Students

Even as Parliament debates the proposed law, universities have already released admission schedules for incoming students.

Several public universities are expected to receive first-year students between late August and early September, meaning many learners could begin their studies before the new funding framework becomes operational.

This timing has raised questions about whether students admitted this year will eventually migrate to the new funding model once it is officially launched.

Education officials have maintained that students should continue following the existing application procedures until further communication is issued by the government.

Continuing Students Urged to Reapply

The Universities Fund has also reminded continuing university students that they must submit fresh funding applications every academic year.

This annual reapplication process enables the government to confirm that students are still enrolled before scholarships and loans are released to their respective institutions.

Officials report that approximately 70 percent of continuing students have already completed their applications, indicating strong participation despite the uncertainty surrounding the proposed reforms.

Students who have not yet reapplied are encouraged to do so within the stipulated deadlines to avoid delays in receiving financial support.

Kenya university funding model 2026

Proposed Funding Sources Under the New System

The proposed Tertiary Education Funding Authority would introduce a broader financing strategy aimed at making higher education more sustainable.

Among the proposals is raising approximately Sh100 billion annually from multiple sources, including:

• Government allocations
• Education investment bonds
• Development partners
• Graduate loan repayments
• Improved HELB loan recovery
• Private sector partnerships
• Grants and donations
• Parent education savings schemes

Parents may also be allowed to invest in education savings products listed on the Nairobi Securities Exchange (NSE), enabling them to earn returns while saving for their children’s education.

The authority would further have powers to mobilize resources through Treasury bonds, pension funds and other long-term financing instruments to reduce dependence on the national budget.

HELB Still Faces Major Funding Challenges

Despite the ambitious reforms, funding remains one of the biggest challenges facing Kenya’s higher education sector.

Documents presented before Parliament indicate that HELB currently requires over Sh114 billion to adequately finance university and TVET students but has received only about Sh56.7 billion, leaving a deficit of more than Sh57 billion.

The funding gap has raised concerns about the sustainability of student financing and the ability of the government to support the growing number of learners joining higher education institutions each year.

Education stakeholders believe that addressing this financial shortfall will be critical to the success of any new funding model.

What Students Should Do Now

As Parliament continues debating the proposed legislation, students are advised to continue applying for HELB loans and government scholarships through the existing portals and comply with all application requirements.

Applicants should ensure they submit accurate personal and academic details, upload all required documents, and monitor official communication from HELB, the Universities Fund and the Ministry of Education for updates.

Until the new law is enacted, the current funding framework remains legally valid, meaning all applications will continue to be processed under the existing system.

Conclusion

Kenya’s proposed higher education funding reforms could significantly reshape how university and TVET students access financial support in the future. While the planned universal funding system promises a more streamlined and inclusive approach, its implementation depends on Parliament approving the Tertiary Education Placement and Funding Bill, 2026.

For now, students should not postpone their loan or scholarship applications. The government has confirmed that HELB and the Universities Fund will continue operating under the current legal framework until the proposed reforms become law. Staying informed and meeting application deadlines will be essential for learners seeking financial assistance as they begin or continue their studies.

Kenya university funding model 2026