A statement clash between the top leadership of the Higher Education Loans Board (HELB) has exposed deep divisions over the agency’s financial health, raising concerns about coordination and transparency in Kenya’s student financing system.
Board Chairperson Ekwee Ethuro and Chief Executive Officer Geoffrey Monari issued sharply conflicting statements this week, painting contrasting pictures of HELB’s ability to support students amid rising demand.
Speaking at a local radio station yesterday, Ethuro dismissed reports of a funding crisis, insisting HELB is financially stable. “HELB is not broke. It’s just like any other entity,” he said, adding that the board received Ksh34.6 billion last year and has been allocated Ksh41 billion this year. He maintained that the government remains responsive to HELB’s needs.
However, Monari, in a separate briefing to Members of Parliament, revealed that HELB is grappling with a Ksh12.9 billion shortfall, which could prevent the board from issuing loans to 100,000 new students this year. “We needed Ksh48 billion but received only Sh26 billion. Universities and TVETs are bleeding,” he said.
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Monari disclosed that thousands of students missed tuition payments, with HELB only able to provide upkeep support in some cases. “Second semester is worse, we haven’t paid tuition at all,” he added.
Ethuro downplayed the crisis, describing the deficit as part of routine government budgeting. “You get an initial budget, and then appeal for more. We still have time before the academic year starts,” he said, while correcting earlier reports that had pegged the deficit at Sh11 billion.
The rift extended to loan recovery efforts. Ethuro praised HELB’s performance, claiming a 74% repayment rate and noting that many beneficiaries voluntarily clear their balances. “Some walk in, ask how much they owe, and pay,” he said.
Monari, however, criticized defaulters and revealed that HELB is working with KRA and NTSA to trace loanees who have acquired assets but failed to repay. “Some have bought cars but won’t repay their HELB loans; that has to stop,” he said.
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Ethuro also addressed concerns over the Student-Centered Funding Model, saying all applicants are currently considered but the formula will be revised. “This academic year, it will still be the same formula, but parameters must change to reflect public concerns,” he said.
The rift has sparked fears over internal coordination and added to the uncertainty facing students relying on the board for tuition and upkeep support.
By Masaki Enock
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