The Higher Education Loans Board (HELB) has pushed back against claims that Kenyan university students could graduate with debts exceeding Ksh4.2 million under a new financing model, dismissing reports of a 12 per cent loan interest rate as inaccurate and misleading.
In a statement issued on Friday, August 7, HELB said recent reports had misrepresented the country's student financing framework, creating unnecessary anxiety among students, parents and institutions of higher learning.
The board specifically disputed claims published by The Standard in a front-page story titled Degrees of Debt, which suggested that changes to government funding could leave students facing substantially higher loan costs.
HELB CEO Geoffrey Monari said the claims did not accurately reflect the financing structure currently being implemented by the government.
"The publication contains factual inaccuracies regarding HELB's student financing model, loan interest rates, and the level of indebtedness that students are likely to incur," the board stated.
HELB Maintains Student Loan Interest at 4 Per Cent
At the centre of the dispute is the reported 12 per cent interest rate.
HELB clarified that undergraduate university students, Technical and Vocational Education and Training (TVET) trainees and students at the Kenya Medical Training College (KMTC) continue to access loans at an interest rate of 4 per cent per annum.
The clarification directly contradicts reports suggesting that undergraduate loans could attract interest rates as high as 12 per cent under proposed changes to the higher education financing system.
The issue has generated significant concern because higher interest rates could substantially increase the amount graduates are required to repay after leaving university.
HELB, however, insisted that the current financing framework has not introduced such an increase.
Medical Students' Ksh4.2 Million Debt Claim Challenged
HELB also rejected claims that medical students could accumulate debts exceeding Ksh4.2 million before completing their studies.
According to the board, the maximum cumulative HELB financing available to a medical student under the current system is Ksh2,308,116, subject to eligibility, programme duration and annual means testing.
This means the Ksh4.2 million figure cited in the disputed report does not represent the maximum amount that HELB currently finances for medical students.
"The figure of Ksh4.2 million published by the newspaper does not represent HELB financing and does not reflect the actual funding available to beneficiaries under the current model," the board said.
The clarification places renewed attention on how figures surrounding student financing are presented, particularly as Kenya continues transitioning toward a funding system based on individual financial need.
Student-Centred Funding Model Under Scrutiny
The controversy comes as the government continues implementing the Student-Centred Funding Model, which replaced the previous approach to university financing.
Under the current framework, financial assistance is determined according to a student's level of need, with government scholarships and loans forming part of the support available to eligible learners.
Recent reports suggesting that undergraduate scholarships could be abolished and replaced entirely with loans triggered concerns that students from low-income households could face heavier financial burdens.
Such concerns have been particularly pronounced among families whose children are pursuing expensive courses, including medicine and other specialised programmes.
HELB, however, maintained that its mandate remains focused on ensuring that financial limitations do not prevent deserving Kenyans from accessing higher education.
The board said financing is structured around students' individual circumstances rather than applying a uniform funding package to all learners.
HELB Warns Against Unverified Financing Claims
The board's intervention also highlights the growing sensitivity surrounding the cost of higher education in Kenya.
With university fees, accommodation and other education-related expenses already placing pressure on households, claims of multi-million-shilling student debts have the potential to influence decisions by prospective students and their families.
HELB therefore urged students, parents and institutions to rely on official communication when seeking information about loan terms, interest rates and eligibility.
The board said any future changes to student financing policies or operations would be communicated through its official channels.
The latest clarification effectively draws a line between the current financing framework and proposed or reported changes that have not been formally implemented.
For now, HELB says university undergraduates, TVET trainees and KMTC students remain subject to the 4 per cent annual interest rate, while the maximum cumulative financing cited for medical students stands at Ksh2.308 million, depending on eligibility and the duration of their programmes.
The dispute nevertheless exposes the growing public anxiety over the cost of higher education and the financial burden students may carry long after graduation. With funding reforms still attracting scrutiny, accurate disclosure of loan terms will remain critical to preventing misinformation from deepening fears among Kenyan students and their families.
