Nairobi, Kenya — August 7, 2025
The Chief Executive Officer of the Higher Education Loans Board (HELB), Charles Ringera, has thrown his weight behind the newly introduced university funding model, while offering a candid critique of the outgoing system, calling it “broken and unsustainable.”
In a press briefing on Thursday, Ringera said the former model, which relied heavily on blanket loan allocations and government capitation, failed to meet the growing demand for higher education funding. He emphasized that the old approach did not reflect the actual financial needs of students, often leaving many vulnerable learners underfunded.
“We were running a funding system that treated unequal people equally. That is how we failed so many students,” Ringera stated.
The new model, dubbed the “Needs-Based Funding Formula,” classifies students into three categories: vulnerable, less vulnerable, and able, based on their economic backgrounds. Funding is now allocated accordingly through scholarships, loans, and household contributions.
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A Shift Towards Equity and Sustainability
Under the new arrangement, students from poor and vulnerable backgrounds are expected to receive up to 82% of their tuition through government scholarships and an additional 18% via HELB loans, ensuring full coverage of their education costs. Those classified as “less needy” will get a smaller percentage of government support and are expected to contribute more through personal or family means.
Ringera said this new funding model allows HELB to operate more transparently and efficiently, adding that students now apply for loans in real-time rather than relying on delayed bulk allocations.
“It is no longer just about giving loans to everyone. It’s about targeted support that makes sense and creates impact,” he said.
Revealing the Gaps in the Old System
The CEO also revealed that under the old model, HELB had been grappling with a significant loan recovery crisis, pointing out that the board was owed over KSh 15 billion by defaulters, many of whom had left the country or were never traced due to poor data systems.
“Many beneficiaries disappeared into the job market without paying a shilling back. That left HELB handicapped and unable to support new students adequately,” Ringera disclosed.
In addition, he cited systemic challenges such as insufficient government capitation, lack of data sharing from universities, and outdated eligibility criteria as factors that weakened the old structure.
Student Reaction and Public Debate
While some student unions have welcomed the more personalized funding model, others have raised concerns about its reliance on the means-testing mechanism, warning that some needy students might be misclassified due to inaccurate data collection.
In response, Ringera assured that a multi-agency team is working to refine the classification system, with support from the Ministry of Education, the Kenya Revenue Authority (KRA), and county government social services.
Looking Ahead
HELB has already begun disbursing funds under the new model for the 2025/2026 academic year, and Ringera expressed optimism that the shift would transform higher education access in Kenya.
He concluded, “This is not just a financial tool — it’s a fairness framework. We’re ensuring the right student gets the right support at the right time.”