If you borrow from HELB, this is the biggest student-finance proposal in this week's news — and it is a proposal, not law. Saying so plainly matters, because the difference between a Bill and an Act is the difference between hope and a repayment schedule.

Mukurweini MP John Kaguchia has proposed amendments to the Tertiary Education, Placement and Funding Bill, 2026 that would cap student-loan interest at 4% per year and require scholarships covering at least 82% of programme costs for vulnerable students — at least 70% for the extremely needy, with no household contribution. The proposals were in a submission dated 12 October to the National Assembly Departmental Committee on Education, reported on 29 October.

The detail is where the proposal earns its attention. Interest would be suspended while studying or on approved deferment. Repayment would only begin after income exceeds a prescribed threshold, and would be suspended if earnings fall below it, during further study, or in incapacity. Deductions would be graduated, with minimum take-home protection, and accumulated interest and penalties would be capped at the principal amount. Borrowers under 18 would be exempt from interest while under 18. Existing students would keep the terms they joined on, unless the new terms are more favourable.

Kaguchia also backs merging HELB, the Universities Fund and the TVET Funding Board into a single Tertiary Education Funding Authority, with transparent need criteria, written reasons for decisions, appeals, student and parent representation, a costed financial memorandum before Second Reading, and an independent review within three years.

The funding gap behind the proposal is stark. The figures cited put HELB's need for 2026/27 at KSh 112.5 billion to support 1.38 million students, against an allocation of KSh 45.06 billion; the Universities Fund needed KSh 47.36 billion, against KSh 17.92 billion allocated. The committee concluded the first phase of stakeholder engagement on seven Education Sector Bills on Thursday 29 October, chaired by Tinderet MP Julius Melly.

What this is not: it is not a HELB announcement, it is not in force, and no student should plan repayments around it yet. What it is: a concrete, costed direction of travel for student finance, with the next test being what the committee does with it.

What we could not verify: the Bill's current stage beyond the first phase of stakeholder engagement, the prescribed income threshold, and whether the committee adopted any part of Kaguchia's submission were not in the sources checked.

Sources:

- Education News, 29 Oct 2026, 14:34 EAT: https://educationnews.co.ke/news/mp-seeks-4-interest-on-student-loans-pushes-82-scholarships-for-vulnerable-learners

- Nation, updated 30 Oct 2026, 02:11 EAT: https://nation.africa/kenya/news/education/underage-students-to-be-exempted-from-paying-university-loans-interest--5651332

- Education News (committee): https://educationnews.co.ke/news/education-committee-concludes-first-phase-of-stakeholder-engagements-on-education-reform-bills