The Higher Education Loans Board (Helb) has started disbursing Sh10.5 billion to learners in Universities and Technical Vocational Training Colleges (Tvets), ending months of pain for learners.
Helb Chief Executive Charles Ringera told the Business Daily that the loans will benefit 175,000 undergraduates and 70,000 continuing students under the old higher education funding model.
The loans, Mr Ringera said are being disbursed according to student’s preferred modes of payment which include bank accounts or via their Mpesa wallets.
The disbursement comes as a relief for the thousands of learners under the old model of funding, the majority of who are from poor households.
"We are happy to note that disbursements are finally taking place after Treasury released the cash. This comes as a major relief to thousands of learners across the country undertaking different courses," said Mr Ringera on Wednesday.
The Helb boss said that for first-time learners applying for funding under the new higher education funding model for both loans and scholarships, the deadline has been extended to October 7, 2023, as directed by Education Cabinet Secretary Ezekiel Machogu.
At the beginning of September, thousands of university freshmen and Tvet students were yet to get State funding to pay for their tuition and upkeep following cash flow challenges at the Helb.
The agency said it required Sh10 billion from the Treasury to process loan applications for university and college students.
Inadequate allocation and delayed release of cash by the Treasury had triggered the cash crunch at the Helb amid rising defaults from former university students.Â
The delayed disbursement meant that the first-year students sought alternative means of paying for their tuition, accommodation and upkeep.
