Helb in new partnership with county governments to manage education funds

The Higher Education Loans Board (Helb) is partnering with various county governments and constituencies to boost equity in distribution of money to students and minimise reliance on the funding by national government.

Helb CEO Charles Ringera said they had entered into an agreement with about 20 counties and 10 constituencies to have the board manage their education fund kitty.

In the arrangement, counties and constituencies will provide funds to Helb and also a list of beneficiaries with the board managing the funds as well as helping the providers recover the funds after the students’ complete their education.

He said Nairobi County was among the highest contributors pledging Sh2 billion, while Igembe North CDF was leading amongst the constituencies, having chipped in Sh10 million.

The money will be put in a revolving fund where students from the respective contributors will receive funding.

EASE FINANCING BURDEN

Speaking during a consultative meeting between the Ministry of Education, county assembly and Helb officials at Izaak Walton Inn Tuesday, Mr Ringera said the move has helped ease the burden to finance education to over 209,000 students pursuing higher education in Kenya.

He said the board had a deficit of over Sh2 billion and was unable to cater for over 20 per cent of applicants.

Mr Ringera, at the same time, said that Helb had tightened the noose on those who were perennially defaulting to repay their loans by listing them with the Credit Reference Bureau.

Those who decline to service their loans will get negative credit ratings, which could affect their access to loans.

He said that the number of Helb loan defaulters stood at 70,000, most of whom are in the diaspora, noting that the board has put in place stringent measures to track them down.

Mr Ringera said allocation for the funds has been centralised thus making it impossible for beneficiaries to receive double allocations.

Among the counties that have entered into the agreement with Helb are Kakamega, Busia, Nakuru, Kericho, Nairobi, Embu and Kisumu.

Embu County Executive for Education Jamleck Muturi said Sh118 million has been allocated to students in institutions of higher learning, with 18 per cent of the Helb managed kitty benefiting university students and 70 per cent benefiting diploma students.

The remainder has been allocated to those in technical institutions.