Difference Between HELB Tuition Fees and Upkeep Funds Explained

Many university and TVET students often wonder why part of their Higher Education Loans Board (HELB) funding is sent directly to their institution while another portion is deposited into their personal account.

Under Kenya’s student financing model, HELB funding is divided into two components: tuition fees and upkeep funds.

Although both form part of a student’s loan package and are repayable after completion of studies, they serve different purposes and are disbursed through separate channels.

Difference Between HELB Tuition Fees and Upkeep Funds

Tuition fees are allocated to cover academic expenses associated with a student’s programme.

These funds go directly to universities and TVET institutions to help cover the cost of education.

Also Read: How Long Does HELB Take to Process and Disburse Student Loans?

Upkeep funds, on the other hand, are intended to support a student’s daily living expenses, including accommodation, meals, transport and other personal needs.

Unlike tuition fees, upkeep funds are deposited directly into a student’s bank account or mobile money account.

Why Tuition Fees Are Sent Directly to Universities

The direct remittance of tuition fees to institutions ensures that academic charges are settled and students remain enrolled in their respective programmes.

Before any disbursement is made, institutions are required to verify a student’s enrolment status. They must also communicate any changes such as deferment, discontinuation of studies, or graduation.

How Students Access Upkeep Funds

Students can receive upkeep allocations through bank accounts or mobile money accounts registered under their national identification details.

HELB has also introduced a USSD service that allows beneficiaries to withdraw upkeep funds by dialing *642#, selecting the withdrawal option, and confirming the amount to be transferred to M-Pesa.

People Who Can Qualify for HELB Funding

Eligibility is limited to Kenyan citizens enrolled in institutions accredited by the Commission for University Education (CUE) or the Technical and Vocational Education and Training Authority (TVETA).

Also Read: How To Access HELB Compliance Certificate

Applicants are expected to provide accurate personal, academic, and financial information through the official HELB or Higher Education Fund (HEF) application portals.

About Repayment of Tuition Fees and Upkeep Funds

Both tuition fees and upkeep funds form part of a student’s loan obligation and are subject to repayment after studies.

Depending on the loan product and agreement signed by the beneficiary, repayment may begin immediately or within 12 months of completing studies.

Beneficiaries are also required to keep their employment details updated and make regular repayments to avoid penalties, legal action or listing with Credit Reference Bureaus (CRBs).

Under the HELB Act, employers are mandated to deduct loan repayments from employees’ salaries and remit the funds to the board.

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Members of the public inquiring about various HELB services at the Higher Education Loans Board offices. PHOTO/File