HELB bands explained: Why some students get bigger loans and scholarships than others
By Steve Ireri, July 12, 2026More than 170,000 students who secured university and TVET placements for the 2026/2027 academic year are now racing against time after the government officially reopened the Higher Education Financing (HEF) portal for new funding applications.
The portal, which reopened shortly after the release of university placement results, allows first-time university and TVET students to apply for government scholarships, HELB loans and bursaries under Kenya’s Student-Centred Funding Model (SCFM). Applications for first-time students will remain open until September 8, 2026, while continuing students have also been advised to submit their subsequent HELB loan applications through the *642# USSD service.
For many applicants, however, the biggest question is no longer whether they qualify for funding, but how much funding they will receive. That answer lies in a little-known digital system that quietly determines whether a family will pay just a few thousand shillings or hundreds of thousands every academic year.
The hidden algorithm behind every HELB application
Behind every HELB funding decision is an automated statistical engine known as the Means Testing Instrument (MTI). Unlike previous years where many believed KCSE performance or manual vetting played a major role, the current funding model relies heavily on this algorithm to estimate every applicant’s financial strength before assigning them to one of five funding bands.
The band a student falls into ultimately determines the percentage covered through government scholarships, the amount HELB will lend them, the portion expected from parents or guardians and even the upkeep allowance they receive while in college.
This explains why two students admitted to the same university, pursuing the same degree and sitting next to each other in class can receive completely different funding packages. One student may only be required to contribute around Ksh5,000 to Ksh10,000 every semester while another is left with a fee invoice running beyond Ksh75,000 despite pursuing the same course.
Understanding the five HELB funding bands
The system categorises students into five socioeconomic bands ranging from Band One, which covers the country’s most vulnerable households, to Band Five, which consists of families considered financially able to meet a larger share of university costs.
Students placed in Band One receive the highest government support. Their tuition is largely covered through a government scholarship, supplemented by a HELB loan, leaving parents to contribute only about five per cent of the total fees. They also receive the highest annual upkeep allowance of approximately Ksh60,000 to cater for accommodation, food and other living expenses.
Band Two students also enjoy substantial support, although parents are expected to contribute a slightly larger percentage of tuition while the annual upkeep allowance drops marginally. Those placed in Band Three receive an equal combination of scholarships and loans but are expected to shoulder an even bigger share of the fees through family contributions.
Students classified under Band Four receive lower government scholarships and consequently face significantly higher family contributions. Those in Band Five receive the least financial support, with families expected to pay nearly 40 per cent of tuition costs while receiving the smallest upkeep allocation.
For ordinary degree programmes costing around Ksh200,000 annually, the differences are already significant. However, the financial burden becomes even heavier for expensive professional courses such as Medicine and Surgery, Dentistry or Pharmacy, where annual tuition can reach Ksh600,000. A student placed in Band Five could therefore be required to raise nearly Ksh240,000 every year from family contributions alone.
How HELB calculates your financial band
Once an applicant submits details through the Higher Education Financing Portal, the MTI immediately begins analysing multiple datasets to estimate the family’s financial capacity. Rather than relying solely on declared salaries, the system combines several indicators to create a socioeconomic profile for every applicant.
One of the biggest factors is household income and dependency. The algorithm not only looks at how much parents earn but also calculates how many people depend on that income. For instance, a parent earning Ksh80,000 while educating five children is likely to receive more favourable consideration than another parent earning the same amount but supporting only one child.
The schools a student attended also play a role in the assessment. Applicants who studied in expensive private schools are generally assumed to come from financially stable households, while those who attended public day schools, sub-county schools or benefited from verified NGO or CDF scholarships are often considered more deserving of government support.
The system further considers geographical location. Families living in arid and semi-arid regions or other officially recognised marginalised areas may receive additional consideration based on poverty statistics compiled by the Kenya National Bureau of Statistics. Urban applicants, on the other hand, may undergo further scrutiny as the algorithm attempts to estimate disposable household income using available digital indicators.
Some applicants also qualify for automatic priority under the system. Students who are verified orphans, registered persons living with disabilities or beneficiaries of the government’s Inua Jamii cash transfer programme can be automatically placed in Band One once the relevant documents have been successfully verified.
Why many students are wrongly classified
Despite the sophisticated technology behind the funding model, the MTI has continued attracting criticism from students and parents over frequent cases of misclassification. Every admission cycle, thousands of applicants from humble backgrounds complain after discovering they have been placed in Band Four or Band Five despite struggling to afford university fees.
Education experts say the algorithm is highly sensitive to incomplete or inaccurate information.
Even mobile phone registration can influence the outcome. Students whose SIM cards are registered under parents operating businesses with high M-Pesa transaction volumes may inadvertently appear wealthier than they actually are, leading to higher funding bands.
Fortunately, students who believe they have been wrongly classified are allowed to challenge the decision through the Higher Education Financing Portal. Successful appeals often require documentary evidence such as letters from local chiefs confirming the family’s financial situation, fee statements showing siblings currently in school, or sworn affidavits explaining the income of parents working in the informal sector.