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Kenya: 95,000 to Miss Student Loans in Funds Crisis

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5 years ago

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At least 95,000 university and college students who depend on government loans could soon cut short their studies due to lack of funding.

The Higher Education Loans Board (Helb) yesterday said it will not be able to finance the learners due budget cuts and shrinking loan recoveries.

Helb CEO Charles Ringera said the board had asked for Sh15.5 billion in this year’s budget but the National Treasury slashed it by Sh2.2 billion. Helb, Mr Ringera added, had failed to recover loans amounting to Sh1 billion.

The development, he said, will see 95,000 students in universities, colleges, and technical and vocational education and training institutes (Tvets) miss out on the loans.

“In total this year, we have lost the about Sh3. 2 billion which we will not get for purposes of funding the students,” he said in Nairobi yesterday during the handover ceremony of Elimu Afya Fund by the United States Agency for International Development (USAid).

Students joining university

The shortfall comes in a year when the number of students set to join institutions of higher learning is set to grow substantially.

On top of the existing beneficiaries, the board will now be required to fund the education of 45,000 more medical students who used to get funding from an American agency.

Mr Ringera said 85,000 beneficiaries have defaulted on loans totalling Sh9.5 billion, with the number growing daily. He expressed concern that many students could drop out, adding, that the board may only be able to fund about 450,000 students in Tvets and universities.