Great news has been announced for the 140,000 students who were at risk of missing out on student loans after the reduction of Helb allocations earlier this month.
The University Fund CEO, Geoffrey Monari, confirmed during an interview on Citizen TV that a new funding model would be put in place to cater to these students.
The new model includes an additional Sh30 billion in loans to be given to Helb, which will take care of the 140,000 students mentioned by Helb CEO Charles Ringera.
In addition, there will be an increase in government allocations to the Higher Education Loans Board to Sh31.6 billion.
Ringera confirmed that the new funding model would enable students in the needy and less needy categories, undertaking Bachelor of Medicine courses, to access loans of approximately Sh2.1 million over a six-year course period.
The new model will allow students from needy households to access up to 40 per cent of Helb loans for a degree course in a public university and 30 per cent in a TVET institution.
Meanwhile, less needy students will have access to up to 55 per cent of loans for a degree course in a public university and up to 48 per cent in a TVET institution.
In a further announcement, President William Ruto revealed that the government had increased funding for university education by 56 per cent to Sh84.6 billion in the 2023-24 financial year.
The new funding model will provide scholarships of up to 53 per cent and loans of up to 40 per cent to students from needy households joining universities.
This news comes just a month after Ringera cited difficulties in disbursing Helb loans following a government move that resulted in over Sh5 billion being slashed. This reduction left 140,000 students without funds.