HELB hikes students’ loan up take by Sh20,000 from next year

By AUGUSTINE ODUOR

Kenya: The Higher Education Loans Board (HELB) has good news for eligible university students, who will now receive an extra Sh20,000 in the next financial year.

The loans board Chief Executive Officer Charles Ringera said starting next financial year the minimum cash given to students will be Sh60,000. The minimum loan given to each student today is Sh40,000.

However, this review will only be possible if the Government plugs the over Sh10 billion gap, said Ringera.

He said of the 169,520 students who scored the university minimum entry requirement of C plus and above, the Joint Admissions Board admitted 53,000. He, however, said even with these, close to 2,000 students will miss out on the loans this year. “We have only taken on board 51, 732. But this still leaves a deficit of 117,000 of those who have the minimum grade,” he said.

The loans chief said if all the students who scored the required university entry requirement are all factored in, some Sh13.34 billion must be set-aside in the next financial budget. 

He said this in addition to the Sh1 billion deficit from last years financial year the figure comes to Sh14.34 billion. He said the loans board accrued the deficit when the double intake was implemented. If we are to add Sh2 billion for the students in tertiary colleges then this comes to Sh 16.34 billion. “We need the necessary funds for HELB or else we can cause serious instability in the education sector,” said Higher Education PS Crispus Kiamba. Ringera, however, said with the agencies intensified loans recovery strategy, the institution has projected that in the next financial year; it will collect Sh3.45 billion.

He said another Sh200 million will be raised from donors willing to support the students through the agency.   “We shall have a gap of Sh10.3 billion funding. This means we shall only give loans to the poorest,” he told the Education Committee yesterday. 

He said the criteria to be employed will strictly consider only students who are vulnerable. “We are talking about only students who may not completely continue with university education if they do not get the funds,” said Ringera. Members of the committee also wanted Prof Kiamba to clarify the fate of the Joint Admission Board (JAB).

The team wanted to know if JAB was also allocated any funds at all in the next financial year.

The Universities Act 2012 has created the Kenya Universities and Colleges Central Placement Service, which replaces JAB.

“The Treasury gave us nothing. We need the cash to help the ministry establish the organ to regularise admissions to universities and tertiary colleges,” said Kiamba.