A shadow looms large over the dreams of countless Kenyan students from low-income backgrounds. The Higher Education Loans Board (HELB), the cornerstone of student financing in the country, is grappling with an unprecedented funding deficit, threatening to derail the academic aspirations of approximately 160,000 university and TVET students in the upcoming September intake. This isn't just a financial shortfall; it's a looming national crisis with far-reaching consequences for Kenya's future workforce and social stability.
Geoffrey Monari, the CEO of HELB, recently painted a grim picture, confirming the board's inability to issue new student loans for the current financial year. Last year, despite needing Ksh.48 billion, HELB received only Ksh.26 billion, leaving over 100,000 students without full financial support. "We paid upkeep for some, but not tuition. Second semester is worse — we haven’t paid tuition at all," Monari stated, highlighting the severity of the situation.
The Ripple Effect: Universities and TVETs "Bleeding"
The funding crisis extends beyond individual students. Universities and Technical and Vocational Education and Training (TVET) institutions, heavily reliant on HELB tuition remittances, are now struggling to remain operational. While HELB prioritized student upkeep to mitigate unrest, this has inadvertently choked the very institutions meant to nurture talent. Monari candidly admitted, "Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough." This financial strain puts academic programs, staff salaries, and even the existence of some institutions at risk, potentially leading to widespread instability in the higher education sector.
The Elephant in the Room: The Defaulter Dilemma
A significant contributor to HELB's woes is the staggering number of past beneficiaries who are defaulting on their loans. HELB has identified billions in unpaid loans from individuals who, despite having secured jobs and even acquired luxury assets, are actively dodging their repayment obligations. This widespread non-compliance exacerbates the funding gap, making it impossible for the board to support new cohorts of students.
To combat this, HELB is pushing for more robust measures. They are actively seeking access to personal data from crucial agencies like the Kenya Revenue Authority (KRA) and the National Transport and Safety Authority (NTSA). "We’re working with KRA and NTSA. Some have bought cars but won’t repay their HELB loans — that has to stop," affirmed Monari, signaling a tougher stance on tracing and recovering these overdue funds. HELB has already recovered over Ksh 5.2 billion in the 2024/25 financial year through enhanced tracing efforts and employer audits.
Proposed Solutions: A Path Towards Sustainable Funding
Recognizing the urgency, HELB is advocating for sweeping reforms to establish a more sustainable funding model for higher education in Kenya. Key proposals include:
- An Education Levy from VAT: HELB is suggesting a 3% education levy drawn from Value Added Tax (VAT), a model inspired by Ghana's successful 2.5% allocation for education. This would create a dedicated, long-term funding stream, reducing reliance on volatile annual government appropriations.
- Voluntary Savings Scheme for Parents: Another innovative idea on the table is a voluntary savings scheme managed by HELB. This scheme would allow parents to invest in their children's education, earning dividends and even providing access to loans, thereby easing pressure on direct government support and fostering a culture of long-term educational investment. As Julius Melly, Education Committee Chairperson, noted, "Parents can save, earn dividends — and even borrow from it. It’s like any other investment fund."
What's at Stake for September?
Unless immediate and bold actions are taken to bridge the massive Ksh.48.9 billion deficit across the 2024/25 and 2025/26 financial years, the consequences for the September intake could be devastating. HELB's stern warning is clear: thousands of deserving students, who have worked hard to qualify for higher education, may find their dreams indefinitely deferred or completely shattered. This situation not only impacts individual lives but poses a significant threat to Kenya's human capital development and societal progress.
The coming months will be critical. The onus is now on policymakers to implement the necessary reforms and secure the funding required to safeguard the future of higher education in Kenya, ensuring that no deserving student is left behind due to a lack of financial support.
