In a major milestone for Uganda’s higher education financing reforms, the Ministry of Education and Sports has announced the approval of 2,047 students as beneficiaries under the Higher Education Students’ Financing Scheme (HESF) for the 2025/2026 academic year. The development signals a renewed commitment to inclusive, equitable, and regionally balanced access to higher education following the full integration of the student loan scheme into the Ministry’s structure.
Presenting a statement to Parliament on 20th October 2025, the Minister of State for Higher Education, Dr. John Chrysestom Muyingo, confirmed that the scheme formerly managed by the Higher Education Students’ Financing Board (HESFB) is now a fully-fledged department within the Ministry. The restructuring followed the amendment of the HESF Act (2024) and the Rationalisation of Government Agencies and Public Expenditure (RAPEX) initiative, aimed at improving efficiency, eliminating duplication, and aligning student financing with the national education and skills development agenda.
“The integration of the loan scheme into the Ministry ensures stronger institutional coordination and alignment with Uganda’s broader human capital development strategy,” Dr. Muyingo told Parliament.
A Record Number of Applications and Beneficiaries
The 2025/2026 call for applications, which ran from June 15 to July 31, 2025, attracted a total of 7,125 applicants, representing a 10% increase from the previous academic year. Out of these, 2,047 students or 28.8% qualified for financial support. The approved cohort includes 1,196 males (58%) and 861 females (42%), reflecting improved gender representation following the adoption of affirmative action measures that awarded an additional seven points to female applicants.
The Ministry also expanded support for Persons with Disabilities (PwDs), awarding loans to 45 students, up from 29 last year. Of these, 36 are male and 9 are female, underscoring government’s continuing efforts to promote inclusive education.
District-Based Quota System to Ensure Equity
In response to Parliamentary recommendations, the Ministry adopted a three-tier selection model based on district quotas, gender, and socioeconomic vulnerability. Sixty percent (60%) of beneficiaries were selected through district quota allocations, while the remaining forty percent (40%) were awarded loans using a proxy means test to assess household economic vulnerability.
Each district received a uniform quota of four to five slots, ensuring that even historically underrepresented regions such as Amudat, Nabilatuk, Kalangala, and Buliisa secured beneficiaries in this year’s selection.
“Every part of the country now has representation in the loan scheme,” Dr. Muyingo emphasized. “Districts with traditionally low participation rates have seen a notable increase in successful applicants.”
Fields of Study Reflecting National Priorities
This year’s beneficiaries largely fall within Uganda’s priority disciplines, consistent with the National Development Plan IV (NDP IV), which emphasizes Agro-industrialization, Tourism, Mineral Development (ATMs), and STEM fields; Science, Technology, Engineering, and Mathematics.
Education emerged as the most represented discipline with 513 beneficiaries, followed by Engineering with 440, indicating growing interest in technical and teaching-related professions that support the country’s human capital development strategy.
Loan Coverage and Budget
The student loans cover tuition, functional, and research fees, as well as aids and appliances for students with disabilities. Funds are disbursed directly to higher education institutions, both public and chartered private universities as well as selected Other Tertiary Institutions (OTIs).
For the 2025/2026 academic year, the loan budget stands at UGX 7.83 billion, initially earmarked to support 1,500 students. However, due to efficient allocation and lower per-student unit costs, particularly in education programs, the Ministry was able to extend support to 2,047 students without additional funding.
Strengthening Human Capital Through Targeted Financing
The inclusion of 28 universities and multiple tertiary institutions in the loan scheme highlights the government’s effort to diversify access beyond traditional university pathways. This broader approach ensures that students pursuing diplomas and technical qualifications fields critical to industrial growth are equally supported.
Dr. Muyingo acknowledged the continued challenge of high demand against limited resources but reaffirmed the government’s commitment to scaling up investment in higher education financing.
“This year, only 28% of applicants received funding. To meet the growing demand, Parliament must consider increasing allocations to the Students’ Loan Fund,” he urged.
A Pathway to Uganda’s Knowledge Economy
The reform of the student loan scheme underlines a strategic policy shift, one that positions education financing as a cornerstone of Uganda’s transition toward a knowledge-based economy. By prioritizing equitable access, regional representation, and alignment with national development priorities, the Ministry is bridging the gap between opportunity and affordability for thousands of young Ugandans.
In the words of Dr. Muyingo, “The true measure of national progress lies not in the number of universities we build, but in the number of lives we enable to learn, create, and contribute.”
As Uganda continues its march toward middle-income status, the strengthened student loan scheme represents more than financial aid, it is a deliberate investment in the nation’s most renewable resource: its people.
