The Higher Education Loans Board (HELB) of Kenya has announced a revised loan allocation structure for continuing students in 2025. This revision responds to the surge in applications—over 550,000 students have sought funding in the current cycle—and aims to enhance both the accessibility and efficiency of financial support for higher education nationwide (1, 2, 3).
Key Changes in HELB Loan Allocation
Revised Allocation Framework
HELB’s new loan disbursement framework focuses primarily on financial need rather than strictly on academic year. Loan amounts are assigned based on five financial need bands determined by the Means Testing Instrument (MTI), which assesses household income and economic vulnerability. Continuing students receive upkeep loans split into two semester payments annually. For example, the most vulnerable students (Band 1) receive Ksh 60,000 per year, while subsequent bands receive progressively lower amounts. Scholarships are now allocated separately from upkeep loans to increase transparency.
Increased Funding and Need-Sensitivity
The maximum loan amounts have been increased to accommodate more students, especially those from vulnerable backgrounds. While students in advanced years and final year students may have tailored considerations—such as funds to meet graduation expenses—these adjustments are secondary to the primary criterion of assessed financial need.
Streamlined Processing and Disbursement
HELB has embraced digital platforms to facilitate faster processing and disbursement of loans. The payments are scheduled on a per-semester basis, aiming to reduce delays, provide predictable funding flows for both students and institutions, and simplify repayment tracking through standardized plans.
Impact on Students and Institutions
For Students
- Greater flexibility with funding, covering tuition and living expenses according to assessed need.
- Faster access to funds through semester-based disbursements enhanced by online systems.
- Continued support, especially for vulnerable and final-year students preparing for graduation.
For Institutions
- Improved coordination with HELB through predictable, scheduled funding, aiding institutional budgeting and planning.
Application Trends and Future Outlook
HELB continues to see rising application numbers, with over 550,000 applicants in 2025. The board is expanding its capacity, increasing government allocations (about Ksh 41 billion for 2025/2026), and partnering with stakeholders to ensure loan sustainability and broaden access to higher education.
Conclusion
HELB’s revised loan disbursement structure represents a critical advancement in making higher education in Kenya more accessible by focusing on financial need bands, increasing funding caps, and streamlining disbursement processes. These reforms improve transparency, equity, and efficiency, ensuring that deserving students receive timely and adequate financial support throughout their academic journey (1, 2, 3).
References
- HELB announces revised loan disbursement structure for continuing students – Kenyans.co.ke
https://www.kenyans.co.ke/news/115018-helb-announces-revised-loan-disbursement-structure-continuing-students - Over 550,000 students apply for HELB funding – The Star
https://www.the-star.co.ke/news/2025-08-07-over-550000-students-apply-for-helb-funding#google_vignette - HELB announces changes in loan allocation for continuing students – Education News
https://educationnews.co.ke/helb-announces-changes-in-loan-allocation-for-continuing-students/
