Confusion as top HELB bosses disagree amid student loan crisis

Higher Education Loans Board (HELB), Chairperson Ekwe Ethuro during an interview on Spice FM. [Screengrab] A sharp contradiction has emerged between the Higher Education Loans Board (HELB), Chairperson Ekwe Ethuro and HELB CEO Geoffrey Monari, giving conflicting state of affairs over the true financial state of student funding. While Ethuro during an interview on Spice FM on Thursday insists that HELB is financially sound, Monari paints a grim picture. "HELB is not broke. It's just like any other entity," said Ethuro. "We got Sh34.6 billion last year, and have been allocated Sh41 billion this year. Of course, demand is rising, but the government has been responsive,'' he said. However, Monari told MPs that HELB is unable to issue loans to 100,000 new students this year due to a Sh12.9 billion funding shortfall. "We needed Sh48 billion in the last financial year but received only Sh26 billion. Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough," he said. Monari added that thousands of students were left without full tuition support, forcing HELB to prioritise upkeep payments over fees. "We paid upkeep for some, but not tuition. Second semester is worse, we haven't paid tuition at all," he revealed. Ethuro, however, downplayed the crisis, terming it a normal government budgeting issue. "This is how government works: you get an initial budget, and later you appeal for more. We still have time before the academic year starts," he said. He also clarified that the supplementary budget shortfall Monari referred to was Sh12.9 billion, not Sh11 billion as earlier reported. On loan repayments, Ethuro said the majority of loaned students are honouring their repayments. "Many are willing to pay. Some walk in, ask how much they owe, and clear it. The challenges of recovery, we operate almost at 74 per cent performance. That is a good recovery percentage," said Ethuro. However, Monari criticized defaulters, saying HELB is now seeking access to other government entities to track them. "We're working with KRA and NTSA. Some have bought cars but won't repay their HELB loans; that has to stop," said Monari. Ethuro further assured that the concerns raised over the challenges with the new funding model will be addressed. "Everyone who applies, we actually allocate. Given the concerns, Kenya is actually being revised. This new academic year, it will still be the same formula, but parameters must change, so that we capture all the concerns that have been raised, "said Ethuro.

Confusion as top HELB bosses disagree amid student loan crisis

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Confusion as top HELB bosses disagree amid student loan crisis

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