The Higher Education Loans Board (HELB) has announced the opening of the 2026/2027 subsequent loans for continuing students.
In a notice on Monday, June 1, HELB invited eligible students to submit applications as early as possible via *USSD *642#.”
“The HELB Subsequent Loan Application for 2026/2027 is officially open from 1st June 2026. All Continuing students can now apply via *USSD *642#,” the notice reads.
The announcement comes at a time when HELB is exploring a new financing approach that would allow it to raise funds from financial markets through a proposed social bond.
The move is aimed at strengthening student funding and addressing recurring delays in loan disbursements.
HELB Chief Executive Officer Geoffrey Monari said the proposal, which is being developed in collaboration with the World Bank, seeks to package future loan repayments into an investment vehicle that can attract private investors.
Monari noted that the goal is to create a more reliable and predictable source of funding for students enrolled in universities and Technical and Vocational Education and Training (TVET) institutions.
If implemented, the model is expected to reduce persistent funding bottlenecks, ensure timely payment of tuition fees to learning institutions, and ease financial pressure on both students and universities by making funds available when needed.
Currently, about 450,000 former beneficiaries are repaying their HELB loans, generating approximately Sh700 million in monthly collections.
According to Monari, HELB has recorded significant growth since its inception, expanding from supporting just 1,500 students to financing more than 650,000 learners annually across universities and TVET institutions.
Of these, around 400,000 are university students, while another 250,000 are pursuing TVET programmes, including artisan, certificate and diploma courses.
“Our annual capitation is Sh41 billion. We give out about Sh46 billion annually, yet our capital base since 1975 stands at Sh200 billion,” Monari said during an interview with Government Spokesperson Isaac Mwaura.
Despite the expansion, Monari acknowledged that loan recovery remains a major challenge. He cited difficulties in collecting repayments from graduates who lack stable sources of income, as well as the need for continuous follow-up to encourage compliance among borrowers.
“After issuing the normal loans, we identify students who are unable to raise the household contribution required. Under the old model, we gave between Sh4,000 and Sh8,000, but under the new model, we now provide between Sh5,000 and Sh40,000 purely for tuition support,” Monari said.
Under the proposed social bond system, HELB would raise funds directly from investors using expected loan repayments as security instead of waiting for National Treasury allocations.
“A social bond will allow us to securitise the loan repayments we are already receiving. We have held discussions with the World Bank and they have reviewed our loan book and confirmed it can be securitised,” he said.
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