The government has disbursed Ksh3.32 billion to support the maintenance of university students, ensuring first and second-year learners benefit from funds distributed through the Higher Education Loans Board (HELB).
Education Cabinet Secretary Julius Ogamba announced that the disbursement for the 2024/2025 academic year was completed by January 31.
Ogamba stated that each student will receive payments ranging between Ksh40,000 and Ksh60,000. He clarified, “These recent disbursements are part of the funds appropriated in July 2024, aligned with the current Financial Year’s budgetary framework.”
This announcement comes after a day of protests, during which University of Nairobi (UoN) students marched to HELB offices demanding faster loan disbursements. Similarly, Kenyatta University students blocked a section of Thika Road to voice their concerns over delayed funding.
The students expressed frustration, emphasizing that the delays had left them struggling to cover essential academic and personal expenses. They highlighted the critical need for timely financial support to manage education-related costs and daily needs.
Meanwhile, HELB has confirmed it will fund first and second-year university students using the old differentiated unit cost model while awaiting the outcome of its appeal against the High Court’s suspension of the new funding model. This means the two affected groups will be financed under the same system used for third and fourth-year students.
The government introduced the new funding model in 2023 to address rising university education costs. However, it quickly became contentious, with stakeholders questioning its fairness and potential impact on students. In response, HELB is working to resolve these issues while maintaining continuity in student funding.
On December 20, 2024, the High Court declared the new funding model unconstitutional, citing discrimination and its failure to adequately address students’ needs. Following this ruling, Education Cabinet Secretary Julius Ogamba, Attorney General Dorcas Oduor, HELB, and the Trustees of the Universities Fund filed an appeal to reinstate the model.
The appeal is currently pending a hearing, as the parties involved seek to provide a comprehensive solution to the ongoing challenges in higher education financing.
