HELB Budget Shortfall: Over 100,000 Students Risk Missing University
Education costs in Kenya are rising sharply, exacerbating the divide between the wealthy and the poor.
This trend threatens to exclude many 2023 Kenya Certificate of Secondary Education (KCSE) graduates from university.
The government’s significant reduction in tuition and upkeep funds for students has severely impacted private universities, resulting in low enrollment numbers that hinder their operations.
For the Financial Year 2024/25, the Higher Education Loans Board (HELB) presented a document to Members of Parliament (MPs) indicating a proposed budget of Ksh28.1 billion.
Only continuing students (years two through six) will receive this funding, leaving out the 2023 KCSE graduates expected to join the university in September.
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In FY 2023–24, HELB had an allocation of Ksh31.89 billion for tuition and upkeep loans.
However, this amount is inadequate for the 122,634 students who completed their KCSE last year. First-year students alone need around Ksh13.8 billion.
The drastic reduction in student loans leaves a substantial funding gap, with the proposed allocation for FY 2024/25 being just Ksh2.4 billion, resulting in a Ksh11.4 billion shortfall.
This funding can only support 21,512 students, leaving 101,122 without financial aid.
The document noted that to cover the Year One students from the KCSE 2023 cohort, HELB requires Ksh13.8 billion.
However, the FY 2024–25 budget proposal reveals a financial deficit of Ksh11.4 billion. Consequently, HELB can only fund all continuing students and 17.2% of new university entrants in 2024.
The budget cuts will also have an impact on continuing students. The National Treasury reduced its funding from Ksh34.1 billion in FY 2023/24 to Ksh17.5 billion in FY 2024/25, a decrease of Ksh16.5 billion.
Despite this, the National Treasury allocated Ksh22 billion for university scholarships under the new funding model, now in its second year.
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The new funding model, which was introduced by President Ruto in May 2023, focuses on students’ financial needs to alleviate the financial struggles of higher education institutions.
Under this model, students from extremely needy households receive 100% funding. Needy and less needy students receive 93% of government funding, with their guardians covering the remaining 7%.
President Ruto emphasized that funding will be available through scholarships, loans, and household contributions. This model aims to pull higher-learning institutions out of debt and financial crises.
HELB Budget Shortfall: Over 100,000 Students Risk Missing University
