Government Releases Sh3.32 Billion for Student Upkeep

The government has allocated Sh3.32 billion for the upkeep of first and second-year university students during the 2024/2025 academic year, Education Cabinet Secretary Julius Ogamba has revealed.

The funds, distributed through the Higher Education Loans Board (HELB), were fully disbursed by January 31, 2025. "These upkeep loans, ranging from Sh40,000 to Sh60,000 per student, are essential for supporting student welfare," Ogamba stated in a release.

Ogamba clarified that the disbursements were part of the financial allocations approved in July 2024, as outlined in the current financial year's budget framework.

Despite this, by mid-January, many students enrolled in universities and TVET institutions under HELB's New Funding Model had yet to receive their upkeep and tuition loans.

President William Ruto introduced the New Higher Education Funding Model in May 2023 to provide financial support to Kenyan students based on their financial needs.

Most students under this model are in their first year, completing their first semester.

The government has temporarily reverted to the old funding model to ensure timely disbursement of funds to students' accounts while awaiting the outcome of a court case.

HELB confirmed on Monday that it resumed the old model to safeguard student welfare during the ongoing legal proceedings.

Meanwhile, third and fourth-year students received their funds in December 2024 and January 2025.

The government distributed funds to university students to prevent a potential crisis, even as it awaits the outcome of an appeal challenging a court ruling that declared the new funding model unlawful.

High Court Judge Chacha Mwita ruled that the new model was discriminatory, as it created funding classes based on perceived financial ability, school type, and age.

The Court of Appeal has since declared the government's appeal urgent, seeking to restore the new funding model, which was overturned in December.
 

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