Thousands of Kenyan Varsity Students to Miss Funding as HELB Budget Falls Short

Hundreds of thousands of students heading to universities and technical institutions risk incomplete funding in the coming financial year. The Higher Education Loans Board received far less than required in the 2026/27 budget estimates.

HELB secured Sh56.3 billion against a need of Sh112.1 billion to back an estimated 1.38 million students. That leaves a shortfall of Sh55.8 billion. On average each beneficiary stands to receive about Sh40,694 instead of the Sh81,020 required under the prevailing model.

Such arithmetic means the allocation could fully cover only around 695,000 students. Nearly 689,000 others may therefore go without complete support. The squeeze adds pressure on families already stretched by rising education costs.

The Universities Fund faces its own deficit. It got Sh31.1 billion when Sh47.36 billion was needed for scholarships. The gap of Sh16.26 billion affects an expected 219,279 new scholarship recipients.

Pending commitments at the fund are projected to climb from Sh22.26 billion this year to Sh38.52 billion next. Officials describe the model as need-based with higher support for vulnerable households.

Enrolment in higher education has surged. Student numbers jumped from roughly 70,000 in 2017 to about 258,000 in 2025. That represents growth exceeding 300 percent in less than a decade.

The funding model introduced in 2023 aims to match support to individual financial circumstances. Yet expanding access continues to outpace available resources. Universities and TVET institutions already manage higher operational demands.

For the construction sector the implications run deeper. Engineering and technical programmes feed the pipeline of professionals needed for Kenya’s infrastructure push. Shortfalls could disrupt training for roles in road projects, housing delivery and energy developments handled by agencies such as KeNHA and KURA.

Cabinet Secretary for National Treasury John Mbadi presented the estimates last week. The education sector remains a major budget item but the higher education slice shows clear strain.

Students and institutions now await details on how the reduced envelope will be distributed. Past shortfalls have triggered protests and delays in disbursements. Families from low-income backgrounds feel the impact most acutely.

HELB continues to emphasise loan recoveries as one way to stretch resources. Still the latest figures underscore the challenge of sustaining the student-centred approach amid growing demand.