Education Cabinet Secretary Amina Mohamed during the Helb meeting at Crowne Plaza hotel on May 3, 2018. PHOTO | ANTHONY OMUYA
Summary
- The allocation for the year starting July is a drop from the current Sh10.1 billion, making it the first cut in recent years.
- Data from the Kenya National Bureau of Statistics (KNBS) shows university enrollment declined to 520,893 this year from 564,507 recorded a year ago — making it the first drop since the government stated making public student numbers in the 1990s
The Treasury has cut budget allocation to the Higher Education
Loans Board (Helb) by 5.9 per cent to Sh9.5 billion, weeks after it
emerged that university enrolment dropped by 43,614 last year.
The
allocation for the year starting July is a drop from the current Sh10.1
billion, making it the first cut in recent years. Data from the Kenya
National Bureau of Statistics (KNBS) shows university enrollment
declined to 520,893 this year from 564,507 recorded a year ago — making
it the first drop since the government stated making public student
numbers in the 1990s.
Admission to public universities
of students who scored C+ and above over the past two years has reduced
the pool of learners available for private varsities and parallel
degrees.
The falling student enrolment looks set to
ease pressure on Helb which has struggled in recent years to cater for
the needs of the students, many of who are from poor families.
The allocation of Sh9.5 billion includes cash recovered from
past loanees, meaning that the actual allocation from the Treasury is
much lower.
The
university loan scheme has since 1974 supported over 645,000 Kenyans to
pursue higher education at a total cost of Sh72 billion, according to
Helb records. Of the 396,680 loan accounts created to date, a total of
175,003 loanees have completed their repayment valued at Sh16.7 billion.
About 81,994 of the accounts worth Sh8.2 billion have
defaulted. In 2016/2017 alone, Helb recovered Sh4.1 billion which
accounted for 40 per cent of its financing budget of Sh10.2 billion for
the year.
“Collaborative efforts between Helb and
other partners towards recovery of these loans are therefore most
welcome,” said Cabinet Secretary for Education, Amina Mohamed Thursday
during the Helb and employers’ forum.
“At this point, I
am requesting all employers to ensure that all university graduates in
their employ are made to repay these loans not as a favour but as a
primary requirement.”
Ms Mohamed also announced a 100
per cent penalty waiver for beneficiaries making a one off repayment
made beginning Thursday to end June.
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