The Higher Education Loans Board (HELB) has assured lawmakers it has sufficient resources to support both new and continuing students under the government’s new funding model, despite grappling with loan recovery challenges and a contested land ownership case.
Appearing before the National Assembly Committee on Implementation, HELB Chief Executive Officer Geoffrey Monari said the agency had been allocated KSh41 billion for the 2024/2025 financial year, up from KSh36 billion in the previous year. He acknowledged a small funding deficit but noted that the National Treasury had promised a review in the first supplementary budget.
“We do have money to finance the students,” Monari told MPs, adding that ongoing engagements with the Public Service Commission (PSC) and Teachers Service Commission (TSC) aim to ensure even interns begin repaying loans.
The committee sought clarity on HELB’s compliance with past Public Investment Committee recommendations, including the recovery of KSh24.6 billion in matured student loans.
Monari said the board has introduced incentives such as up to 80% penalty waivers to encourage repayment and is exploring partnerships with the immigration department to improve diaspora recoveries without restricting Kenyans seeking overseas work.
The MPs also questioned HELB’s handling of a land dispute flagged in earlier audit reports. Monari said the Environment and Land Court had ruled against HELB in February 2024, declaring its title deed invalid, but confirmed an appeal was underway.
Lawmakers pressed for more aggressive loan recovery strategies, especially targeting beneficiaries abroad. “We need to know the data on defaulters in the diaspora — they have more resources and should repay,” said Kandara MP Chege Njuguna.
