The National Treasury has moved to avert a looming crisis in higher education by announcing a massive injection of funds into the Higher Education Loans Board (HELB). In a proposal that signals a rare victory for student unions, the allocation for loans will jump to fifty-eight billion shillings, a lifeline for thousands on the brink of dropping out.

This financial injection is part of a broader ninety-two billion shilling package for the 2026/27 financial year, which also sees scholarship funding more than double. Treasury Cabinet Secretary John Mbadi, speaking from Kiambu, framed this as a necessary intervention to stabilize the rocky transition to the new university funding model. The admission is tacit but clear: the initial rollout was underfunded, and the government is now racing to plug the gaps before the next academic year begins.

The Numbers Game

The specific figures are telling. Loan allocations are rising from forty-one billion to fifty-eight billion shillings, while scholarships are leaping from sixteen billion to thirty-four billion. This shift aims to reduce the "household contribution"—the amount parents must pay out of pocket—which has been the primary source of public outcry. By increasing the scholarship component, the state is effectively subsidizing the cost of degree courses that were previously deemed too expensive for the average family.

Education experts welcome the move but warn that disbursement is the real devil. Historically, HELB has been plagued by delays, with students often receiving funds months into the semester. "Allocating money in a budget speech is easy," says one education policy analyst. "Getting that money into a student's bank account before they are barred from exam rooms is the real test of competence."

• The Course-Cost Model: The funding is now strictly tied to the cost of the specific course, meaning a medical student receives significantly more than an arts student, a disparity that continues to spark debate on the valuation of different disciplines.
• Capitation Crisis: While universities breathe a sigh of relief, secondary school heads are still crying foul over delayed capitation, a fire the Treasury has yet to put out.
• Data Integrity: The efficiency of this new funding relies on the accuracy of the Means Testing Instrument (MTI), which categorizes students by need. Errors here could see the rich subsidized while the poor starve.

A Political Safety Valve

This funding boost also serves a political function. With youth unemployment high and the cost of living biting, the university student demographic represents a volatile powder keg. By flooding the sector with cash, the administration is buying stability on campuses. It effectively disarms the student leadership, who had threatened nationwide strikes if the funding model was not reviewed.

For the first-year student refreshing their bank app in a cyber café in Eldoret, this news is the difference between a degree and a deferment. The Treasury has signed the cheque; now the Ministry of Education must cash it. The nation is watching to see if this promise translates into paid tuition and attended classes.