Sh8bn hole in our coffers has hit operations, says Helb boss

The Higher Education Loans Board has defended itself against criticism that it is delaying the release of student loans to applicants.

Helb Chief Executive Officer Charles Ringera on Monday told Nation.co.ke that the delays were due to the failure by previous beneficiaries to repay loans amounting to Sh8 billion.

The board is unable to service the high number of applications from new students due to the debts, he said.

“It’s ridiculous to find some parent accusing us of not funding their child whereas they are yet to remit the loan they received from the board," he said.

"Kenyans need to be responsible. We also have other projects to run other than education,” he added.

The delays have angered students and some of their leaders had vowed to stage a protest on Monday but called if off at the last minute.

APPLIED FOR LOANS

Out of the 154,000 students who borrowed from the agency last year, Mr Ringera said, 30,000 had graduated but a whopping 110,000 freshmen applied for loans in the same period.

“Out of the 110,000 first-time applicants, 65,000 qualified for loans but not all will benefit in one phase. With such an increase, no one can say we failed to plan. We have been sitting in meetings, but the number is far beyond our capacity,” he said.

However, he said they had begun disbursing funds to qualified students on Monday morning, and that recipients were being advised to check their accounts.

Helb's defence came as first-year students, who have been waiting for loans for the last five months, remained hopeful of receiving positive communication from the board.

Ms Joyvee Tesot, a student at Multimedia University, said she and her four colleagues had run out of money to buy food.

“The situation is really traumatising as almost the entire first-year lot is broke. Many had placed their hope in Helb, but they are disappointed,” she said.

DEFERRING STUDIES

She said many of her colleagues had applied for work-study programmes as others hunt for part-time jobs to survive.

In Maseno University, Nelson Okinda said he was contemplating deferring his studies if Helb does not come to his aid.

He accused the board of failing to plan well, and the government for refusing to increase Helb's budget to cater for the ballooning student population in need of loans.

“First-years barely know the side hassle to engage in to earn extra money. Rendering them the sacrificial lambs for Helb’s poor planning should have been the last option,” said the Nyakach resident.

Mr Dalton Nyabundi, also of Maseno University, said the delays in disbursing loans had denied many first-year students the chance of getting accommodation on campus.

“The continuing students got their money late and the first-years may not even get it seemingly,” he said.