HELB proposes changes to Tertiary Education Funding Bill to expand access to loans

Higher Education Loans Board (HELB) Chief Executive Officer Geoffrey Monari has proposed amendments to the Tertiary Education, Placement and Funding Bill, 2026, seeking to widen access to education financing, clarify loan repayment obligations and strengthen the administration of scholarships.

Appearing before the National Assembly Committee on Education, Monari presented and read HELB’s proposed legislative amendments, arguing for a funding framework that accommodates students and trainees across different tertiary institutions while protecting the long-term sustainability of education financing.

Monari told the lawmakers that ‘’an integrated, equitable and financially sustainable tertiary education placement and funding framework that enhances access to education while safeguarding the availability of funds for successive generations of students and trainees.”

The proposals seek to address gaps in the Bill’s definitions, eligibility provisions, scholarship administration and loan recovery mechanisms, which HELB says could affect the implementation of the proposed law, and the proposals seek to expand the definition of an eligible person to include those seeking loans for trainees admitted to tertiary institutions. HELB argues that the current wording risks excluding applicants financing the education of trainees rather than students.

The board has proposed that an “eligible person” include a Kenyan citizen who has attained the minimum entry requirements and secured admission to a recognised tertiary institution, as well as a Kenyan citizen willing to access a tertiary education loan for the benefit of an admitted student or trainee.

Monari said the proposed amendments aim to strengthen the legislation and ensure its provisions reflect the different categories of learners seeking financial assistance.

HELB has also proposed deleting Section 20(5), which states that “Funding under this Act shall be for students who have been placed by the Placement Service.”

The board argues that the restriction could exclude eligible Kenyan students and trainees admitted directly to public and private tertiary institutions.

It says removing the provision would align the Bill with other sections that provide for education loans to learners admitted to public or private tertiary institutions, without limiting eligibility to those placed through the Placement Service.

The proposed amendments also seek to strengthen loan recovery by clarifying who bears legal responsibility for repaying education loans, particularly where an adult applies for financing on behalf of a minor.

"HELB proposes amending Section 30(c) to empower the Authority to recover loans from loan beneficiaries and eligible persons who are legally liable for repayment under this Act,” Monari said.

The board argues that the existing provision focuses on loan beneficiaries without adequately addressing cases where the person receiving the financial benefit differs from the individual legally responsible for repayment.

It has also proposed requiring borrowers to submit annual information on their employment status, income and contact details to support loan recovery and help the Authority maintain accurate records.

The proposed changes include penalties for borrowers who fail to comply with specified reporting requirements, with HELB seeking to improve compliance and protect the sustainability of the education loan fund.

The board also recommended clearer definitions of formal and informal employment to guide repayment arrangements for borrowers in different economic circumstances, including self-employed borrowers.

HELB is also seeking amendments to expressly recognise trainees in scholarship administration, arguing that the Bill's current wording could leave some learners outside the funding framework.

Among the proposals is an amendment to Section 29(d) to require the Authority to “administer scholarships to eligible students and trainees pursuing tertiary education.”

The board has also proposed replacing “equal access” with “equitable access to Government funding,” saying that uniform funding may not adequately account for differences in programme costs and learners’ financial circumstances.

The memorandum states that the change would provide a basis for differentiated financial support, particularly for vulnerable and financially disadvantaged students.