In 2023, the Government of Kenya launched the Higher Education Financing portal to ensure equality in the access to education for university and TVET students. The HEF portal is based on the New Funding Model (NFM) launched by the President of Kenya on 3 May 2023. Under the NFM, students assessed as vulnerable and extremely needy will receive 100% Government funding for their education. Those assessed as needy will receive 93% of Government funding via the HEF porta
The Higher Education Loans Board (HELB) in Kenya, functioning under the Ministry of Education, primarily aims to make higher education accessible and affordable through the provision of loans, bursaries, and scholarships. Targeting especially those in financial need, HELB facilitates access to university education for Kenyan students. It serves as the legal successor to the former Higher Education Loans Management Board, which was set up under the now-repealed Higher Education Loans Fund Act. This transition underscores HELB’s ongoing commitment to supporting higher education financing in Kenya.
The Higher Education Loans Board (HELB) in Kenya has a diverse membership structure, including:
- A Chairman, appointed by the President.
- The Secretary to the Commission for Higher Education.
- The Permanent Secretary of the Ministry of Education or their representative.
- The Permanent Secretary of the Ministry of Finance or their representative.
- The Chairman of the Vice-Chancellors Committee for Public Universities.
- A representative of the Vice-Chancellors or Principals of Private Universities.
- The Executive Director of the Federation of Kenya Employers.
- The Chairman of the Kenya Bankers Association.
- Two additional persons appointed by the Cabinet Secretary for Education.
- Up to three additional persons who may be co-opted by the Board as needed.
The Cabinet Secretary for Education appoints the Chairman of the Vice-Chancellors Committee, the representative of private universities’ Vice-Chancellors or Principals, the Executive Director of the Federation of Kenya Employers, and the Chairman of the Kenya Bankers Association.
Board members, except ex officio ones, serve for five years and may be reappointed. A member’s position becomes vacant if they resign, are physically or mentally incapable of performing their duties, become bankrupt, commit a crime affecting their Board member status, or die. In case of a vacancy, the Secretary must immediately inform the appointing authority to take the necessary steps.
The Cabinet Secretary for Education appoints the Secretary to the Higher Education Loans Board (HELB), who acts as the chief executive and manages the day-to-day operations of the Board. The Secretary serves for six years and is eligible for reappointment. As the head of the Secretariat, the Secretary ensures the effective execution of the Board’s directives, acting as an ex officio member of the Board without voting rights.
The functions of HELB include:
- Developing policies for managing the Higher Education Loans Fund.
- Seeking funding and assistance to support the Board’s functions.
- Establishing criteria for loan disbursement, including interest rates and repayment conditions.
- Accepting gifts, donations, grants, or endowments and managing disbursements.
- Forming partnerships with local and international entities to advance the Board’s goals.
- Collaborating with financial institutions for loan disbursement and recovery.
- Issuing loans from the Higher Education Loans Fund to eligible individuals for higher education costs.
- Deciding on the maximum number of loan recipients annually.
- Investing surplus funds in legally authorized investments and managing these investments.
- Establishing and using additional funds as needed, with approval from the Cabinet Secretary for Education.
- Processing and deciding on loan applications based on the Higher Education Loans Board Act’s stipulations.
- Borrowing funds as approved by the Cabinet Secretary for Education and the Treasury, securing loans as deemed appropriate.
- Insuring against risks associated with loans, such as death or default.
- Setting up bursaries and scholarships in line with its objectives.
- Carrying out any other functions related to student loans as defined in the Higher Education Loans Board Act.
- Executing additional functions and powers granted by the Act.
The primary goal of the HELB Fund is to provide financial assistance to Kenyan students for higher education in recognized institutions both within and outside Kenya, as sanctioned by the Commission for Higher Education.
The Higher Education Loans Board (HELB) possesses the following powers, acting under its corporate name:
- To sue and be sued in legal proceedings.
- To acquire, hold, charge, and dispose of both movable and immovable property.
- To enter into contracts with various entities.
- To borrow and lend money as part of its financial management and operations.
- To undertake and execute any actions or activities deemed necessary for the effective fulfillment of its functions as outlined in the Higher Education Loans Board Act, within the legal scope allowed for a corporate body.
