NAIROBI, Kenya- The Higher Education Loans Board (HELB) is in dire straits, facing funding challenges that threaten to cut off support for thousands of students.
Dr. Vincent Gaitho, Pro-Chancellor at Mount Kenya University, is urging the government to explore innovative solutions to tackle this issue.
During a recent panel discussion on university funding, Gaitho pointed out potential avenues to alleviate HELB’s financial woes, such as tapping into the Unclaimed Financial Assets Authority, which reportedly holds about Ksh 45 billion.
He suggested that some of these funds could temporarily boost HELB’s coffers, provided they are repaid later.
Gaitho, who also chairs the KEPSA Education Sector Board, highlighted other potential sources, including contributions from multinational and local corporations.
By leveraging their corporate social responsibility (CSR) programs, these companies could support HELB’s revolving fund and ensure continued access to higher education for students.
Gaitho also proposed that recovered assets from corruption cases, like the recently recovered Ksh 5 billion handed over to the President by the Ethics and Anti-Corruption Commission (EACC), be redirected to help fund students.
HELB’s Head of Lending, King’ori Ndegwa, acknowledged the ongoing delays in disbursing funds to universities and students, attributing them to competing demands at the Treasury.
This situation often forces students to resort to fundraising events (harambees) to meet their immediate financial needs.
To tackle these delays, a bill is currently under consideration in Parliament, aiming to centralize bursaries from national and county governments, the private sector, and other sources, as mentioned by Dagoretti North MP, Beatrice Elachi.
In an attempt to be more inclusive, HELB has permitted 55,000 new students without national IDs to use their Kenya Certificate of Secondary Education (KCSE) index numbers and birth certificates to access funding.
Despite these changes, students and university administrators are still struggling with the new funding model. Critics argue that it is plagued by delays, inefficiencies, and discrimination.
Private universities are grappling with financial strain due to the drop in government funding per student. According to Dr. Gaitho, the allocation fell from Ksh 70,000 in 2016 to about Ksh 40,000 before the program ended, forcing institutions to seek alternative funding like bursaries and scholarships.
Today, these universities depend on students receiving HELB loans to meet their financial obligations.
The situation has become more complex with the rollout of the new Variable Scholarship and Loan Funding model for university students, shifting away from the previous Differentiated Unit Cost model.
The new model has faced backlash for its perceived shortcomings and the challenges it presents to students and universities alike.
As the debate continues, finding a sustainable solution for higher education funding is crucial for the country’s future.
