The Higher Education Loans Board (Helb) has commenced disbursement of loans to continuing students at universities and technical and vocational institutions.
This comes months after the government issued a directive on the new method of funding higher education.
In a statement issued by Helb Chief Executive Officer, Charles Ringera, students' upkeep funds will be channeled through learners' bank accounts or the Helb mobile wallet.
"Over 175,000 undergraduate students and 70,000 TVET continuing students will receive funding under the Old Higher Education Funding Model (OFMO)," said the Helb chief.
The funds are expected to reflect from October 5, with the government urging universities and colleges to register students for learning.
They are required to apply for funding under the New Higher Education Funding Model (NFM) for both loans and scholarships.
Previously, before President William Ruto-led government introduced the new Helb model, each student under the government-sponsored programme at a university could receive between Sh40,000 and Sh60,000 per academic year.
However, the loan was disbursed in two instalments, with part of each instalment paid directly into the institution's fee account and the remainder paid into the learner's personal account.
Under the government's recently unveiled funding formula for higher education, Helb is required to allocate loans to students on the basis of need.
Public universities and institutions have also reviewed their tuition fees, with some institutions doubling them.
The increase in fees is likely to lock out bright but financially disadvantaged students from accessing higher education.
