HELB returns to a differentiated unit cost based Old Funding Model.
The Higher Education Loans Board (HELB) has announced that it will continue funding first and second-year university students under the old Differentiated Unit Cost (DUC) model. This decision follows an ongoing legal battle over the new university funding framework, which was suspended by the High Court. As a result, these students will now be funded in the same manner as their third and fourth-year counterparts.
Legal Challenges Against the New Funding Model
The government introduced a new university funding model in 2023 to address the rising costs of higher education. However, it faced significant backlash from various stakeholders, including students and civil rights organizations.
A coalition comprising the Kenya Human Rights Commission, the Elimu Bora Working Group, the Students Caucus, and activist Boaz Waruku filed a petition challenging the model’s legality. They argued that:
- It lacked public participation
- It violated constitutional provisions
- It discriminated against certain groups of students
- It failed to adequately provide for students’ financial needs
On December 20, 2024, the High Court ruled that the funding model was unconstitutional, effectively halting its implementation.
In response, Education Cabinet Secretary Julius Ogamba, Attorney General Dorcas Oduor, HELB, and Trustees of the Universities Fund filed an appeal seeking to overturn the ruling. The case is still awaiting a hearing.
Student Protests Over Delayed Funding
Following the uncertainty surrounding university funding, students from the University of Nairobi and Kenyatta University staged protests at HELB headquarters in Anniversary Towers, Nairobi. They demanded the immediate disbursement of their loans, citing that delays had:
- Disrupted their ability to stay in school
- Left many struggling with tuition and upkeep
- Increased financial strain on their families
In response, HELB Lending Manager King’ori Ndegwa stated that Sh3.1 billion had already been disbursed but admitted that about 180,000 students were still awaiting their allocations. He reassured students that efforts were being made to resolve the delays as soon as possible.
Funding Crisis at the Technical University of Kenya (TUK)
Meanwhile, at the Technical University of Kenya (TUK), scheduled exams were disrupted as lecturers refused to administer tests due to unpaid salary arrears.
The lecturers, who have not been paid since December 2024, went on strike, demanding their dues. TUK students joined the protests, calling on the Ministry of Education to address the funding crisis and ensure that lecturers receive their salaries.
The Way Forward
The uncertainty surrounding university funding in Kenya remains a major concern for students, lecturers, and institutions. While HELB’s decision to revert to the old DUC model offers temporary relief, the legal battle over the new model and ongoing funding delays continue to pose significant challenges for the education sector.
For more updates, students and stakeholders are advised to monitor HELB’s official website and relevant government announcements.
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