Helb requires Sh7 billion for loans

Technical University of Kenya students demonstrating in Nairobi over delayed loans. FILE PHOTO |

What you need to know:

  • Fund boss Charles Ringera says Sh8 billion yet to be recovered from beneficiaries.
  • 188,000 students likely to miss out on loans in the next four months due to lack of funds.

Higher Education Loans Board (Helb) requires Sh6.7 billion to provide loans to 188,000 students in higher learning institutions in the next four months.

The board chief executive officer Charles Ringera said the cash is the entire budget for this year.

Mr Ringera told the Sunday Nation that the cash will be for  124,000 continuing students in public universities and 10,000 continuing students in technical and vocational education institutions (TVET).

“The money will also go to 44,000 first applicants in public universities and 10,000 first time applicants in TVET institutions,” said Mr Ringera.

He said the board had released Sh1.5 billion for about 44,000 applicants in public universities this year.

However, he called on beneficiaries of the loan to repay on time, saying that Sh8 billion is yet to be repaid to the board by students who took loans in the past.

He said the board was only financing about 30 per cent of about 600,000 students from 68 universities.

Mr Ringera said the board is now working with the Kenya Federation of Employers in order to create awareness among employers on the requirement of sub-section 16 of the Act in line with Chapter 6 of the constitution.

“We are also working with the Institute of Human Resource Management (IHRM) to enhance compliance by various employers,” said the chief executive officer.

BEYOND THEIR POWER

Meanwhile, Education Cabinet Secretary Jacob Kaimenyi defended the board against accusations that it was delaying release of funds to students.

Prof Kaimenyi said the delay in release of funds was beyond the power of the board.

“Exchequer release is determined by how soon you pay your taxes. Delay means the board does not get money on time,” said Prof Kaimenyi during a public lecture at Kenyatta University.

He cautioned students against using the money for entertainment and instead urged them to use it to buy books.

He also supported the use of resources from Unclaimed Financial Assets to finance university education in the country.

At the same time, the board is targeting counties and the Constituency Development Fund to fund students who are pursuing higher education.

Mr Ringera said several counties and CDF have expressed willingness to work with the board in creating a devolved fund to support students from those areas.

“So far Helb has received financing from Tinderet Constituency where students have already benefited, while other constituencies such as Igembe North, Karachuonyo, Naivasha, Ainabkoi, Keiyo North, Moiben and Tongeren have expressed interest,” said Mr Ringera.

“These counties are in the process of putting in place the relevant legislation to back up their county education revolving funds. The total pledged amount is almost Sh150 million,” he said.