By Tindi Kuchio
The Higher Education Loans Board (HELB) has once again launched yet another aggressive campaign to recover loans from past beneficiaries.
In their latest initiative, the student loans agency aims at recovering Sh13 billion from 113, 000 beneficiaries and a further Sh31 billion from 136, 000 former loanees who are currently repaying.
Speaking to Education News, HELB’s Chief Executive Officer Charles Ringera said that the aggressive loan recovery campaign had been launched in both print and electronic media including the social media platforms such as twitter, facebook and instagram.
“We have rolled out our services in twenty five Huduma Centres countrywide and expanded our repayment channels so as to enable as many past beneficiaries as possible irrespective of where they are based to be able to pay back for what they borrowed,” explained Ringera.
He informed beneficiaries of HELB loans to download their loan statements from the organisation’s website.
“We lay a lot of emphasis on loan recoveries because we get sixty per cent of our budgetary requirements from the exchequer, thirty eight per cent from recoveries and the remaining two per cent from other sources,” revealed the HELB CEO.
He admitted that the higher education financing body was experiencing difficulties in recovering a total of Sh8.5 billion from 84, 746 past loanees who had never shown any interest to repay their loans after completing their studies since 1974.
“Unemployment and underemployment have become key challenges in loan recovery efforts,” he lamented.
Ringera underscored the urgent need to collect as much funds as possible from past beneficiaries to enable the organisation finance the increasing number of students in dire need for higher education in various institutions.
“We are funding the education of students in 71 public and private universities in Kenya, 130 Technical and Vocational Education Training (TVET) institutions, 85 Kenya Medical Training Colleges and 20 private or faith based medical training colleges. We are also financing the education of Kenyan students in six universities in Uganda, one university in Rwanda and another one in Tanzania,” he further revealed.
Ringera observed that the government had finished the putting up of more TVET institutions in various constituencies in the country bringing the total number to 203 which therefore means that the total number of students in need of HELB loans in the country had risen to about 200, 000.
TVET institutions were first allocated Sh300 million in the 2012/13 financial year; the figure has since been revised upwards to Sh600 million in 2016, Sh900 million in 2017 and now Sh1.2 billion this year.
From 2013, HELB rolled out funding for healthcare trainees in mid –level colleges in collaboration with the IntraHealth International Inc, through the United States Agency for International Development (USAID) funded FunzoKenya project, Ministry of Health (MOH) and the Kenya Healthcare Federation (KHF) among other partners.
Under the kitty Afya Elimu Fund (AEF), HELB has been financing the training of about 12, 000 healthcare workers in various institutions gobbling Sh900 million. The fund has also received contributions from the private sector such as Family Group Foundation, I&M Bank, Standard Chartered Bank and Rattansi Education Trust.
A total of 5, 100 trainees will be funded this year to undergo training in various public, private and faith based medical training institutions in the country at the cost of Sh350 million.
HELB is partnering with institutions such as Tenwek School of Health Sciences, Kijabe Mission Hospital, North Coast Medical School, Daystar University, Kenyatta University and Strathmore University to create revolving funds managed by HELB.
Some of the counties and constituencies have signed up with HELB and are benefitting from the board’s experience in managing student funds.
Some of the counties already onboard include Busia, TaitaTaveta, Kakamega and Uasin Gishu.
So far over Sh100 million from these counties has gone into supporting over 3, 000 students.
Constituencies such as Karachunyo, Igembe North, Awendo, Tigania West, Tinderet, Naivasha, Tharaka and many others have also put in over Sh50 million that has gone into supporting over 500 students in form of loans.
Last year, Barclays Bank of Kenya in partnership with HELB launched a three- year Sh63 million scholarship programme that will provide bright but needy university students with fees and upkeep money, enabling them to acquire quality education and skills to help them earn a decent living.
HELB is supporting 287 civil servants in various institutions of higher learning pursuing undergraduate, masters and doctorates degrees under Civil Servant Training Revolving Fund at a cost of Sh130 million. Currently, HELB is shouldering the burden of financing the education of 264, 000 students across all levels at a cost of Sh11. 4 billion.
Since its establishment, HELB had sponsored a total of 645, 000 students out of the over three million graduates that the country has had since independence using Sh72 billion.
The finance lending body gives students who clear their studies a moratoria or a grace period of a year to stabilise before they start repaying as little as Sh500 per month.
