The Higher Education Loans Board (HELB) has announced that it has abolished the funding model that grouped students into bands.
In a statement dated Friday, August 22, 2025, HELB clarified that student funding will no longer be determined based on bands.
“HELB no longer categorizes student funding allocation into bands,” HELB stated.
According to the loans board, each student’s allocation will now depend on their assessed level of financial need and the cost of the program after discontinuation of the model.
“Each student’s allocation is based on their assessed level of financial need and the cost of the program,” said HELB.
At the same time, the loans board clarified that the amounts of fees to be paid by first-year students shall be provided by the institution they are admitted.
Additionally, HELB explained that each student’s allocation will be determined by their financial need assessment and the reduced cost of their programme.
“From your HELB student portal, please log into www.hef.co.ke to confirm your allocation. The government has reduced the cost of university programmes, meaning you will now pay lower fees. The allocations reflect both your financial need and the reduced programme cost,” the loans board stated.
HELB Scraps Model that Categorized Students into Bands
The Loans Board’s clarification comes days after Education Cabinet Secretary Julius Ogamba reaffirmed the government’s commitment to making the new student-centered funding model effective, emphasizing that all eligible learners will benefit from the initiative.
“Remember, I can’t say this enough, the purpose of the student-centered model is to ensure that every student who deserves support from the government gets it, and we are determined to ensure that we carry that through,” said the Education CS.
Also Read: Govt Issues Notice to Students Over Ksh9.46 Billion HELB Disbursements
On July 17, 2025, the Loans Board announced that the funding model would be changed for the September 2025 intake. Speaking on July 17, 2025, HELB Chairperson Ekwee Ethuro stated that HELB used the new funding model to assess applicants’ financial capabilities.
“We use the formula, which, given the concerns of Kenyans, is also being revised. Maybe this new academic year will still be the same formula, but the parameters must change so that we capture all the concerns that have been raised,” he said.
Ethuro assured 2024 KCSE candidates that everyone applying for loans and scholarships would receive funds.
He mentioned that HELB might provide the exact amount requested by students based on internal assessments.
About the Funding Model Scrapped
The new Higher Education Funding Model was officially unveiled by President William Ruto on May 3, 2023.
It was then implemented starting in September 2023, initially covering students who sat for the 2022 KCSE and were entering universities and TVET institutions.
The New Funding Model classified students into four bands according to their level of financial need. The categories included vulnerable, extremely needy, needy, and less needy.
Also Read: Govt Announces Date for University Students to Receive HELB in Their Bank Accounts
Under this system, students classified as vulnerable were guaranteed full funding through a combination of government scholarships and loans, while those labeled as less needy were expected to contribute a larger share of their university costs.
However, the model faced widespread criticism. Many students and parents felt that the banding system was discriminatory, as it appeared to label learners based on their family background.
Others argued that the assessment process lacked transparency, with some needy students being placed in higher bands and denied adequate support.
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I am a student who is going to join a university.But the way Helb allocated funds am not satisfied
Technically it hasn’t helped anyone as for those who appealed for their bands never got approved the idea of SCFM (NFM) is absurd it’d only be fair to resort back to the OFM (UDM) where the household contribution was 10% of the academic cost and yes I know H.E William said a lot of universities were on the verge of collapsing due to OFM model but what if they’re wrong denying private universities to benefit led to over flooding of public universities for the past two years since the model was introduced. As it is the lecturers aren’t enough, universities staff are underpaid… Chaos after chaos… Bring back the OFM and see change