Crisis looms as HELB says it's broke, seeks access to KRA data to trace defaulters

A higher education crisis is brewing and for thousands of students from low-income families, a university dream may turn into a nightmare.

The Higher Education Loans Board (HELB) has confirmed what many feared: it doesn’t have the money to issue new student loans this year.

Despite needing Ksh.48 billion in the last financial year, it received only Ksh.26 billion forcing over 100,000 students to go without full support last year. Some received full funding while others only got upkeep money.

Geoffrey Monari, HELB CEO, said: "We paid upkeep for some, but not tuition. Second semester is worse — we haven’t paid tuition at all."

To calm unrest, HELB prioritized student upkeep. But the ripple effects are now choking universities and TVETs, which are struggling to stay afloat after HELB couldn’t afford remitting tuition fee.

"Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough," said Monari.

And while the board is cash-strapped, thousands of past beneficiaries are living comfortably, dodging repayment despite securing jobs and buying luxury items.

HELB now wants access to KRA and NTSA data among other personal data to track defaulters and force repayment.

"We’re working with KRA and NTSA. Some have bought cars but won’t repay their HELB loans — that has to stop," stated Monari.

To turn the tide, HELB is also proposing some sweeping reforms: a 3% education levy drawn from VAT similar to Ghana’s model to create sustainable, long-term funding.

"We’re proposing a 3% VAT allocation to fund higher education — just like Ghana does with 2.5%," added Monari.

Also on the table: a voluntary savings scheme for parents managed by HELB to ease pressure on government loans and build a culture of long-term investment in education.

Julius Melly, Education Committee Chairperson, said: “Parents can save, earn dividends — and even borrow from it. It’s like any other investment fund."

But unless bold action is taken and fast, September’s intake could be devastating. HELB warns thousands of students may be locked out of higher education if new funding is not secured.