A deepening crisis is casting a long shadow over the aspirations of thousands of Kenyan students from low-income families, threatening to turn their dreams of higher education into a stark nightmare. The Higher Education Loans Board (HELB), a lifeline for countless students, has officially confirmed widespread fears: it simply does not possess the necessary funds to issue new student loans this academic year. This revelation signals a critical inflection point for Kenya's public education financing system.
The financial strain on HELB is severe and systemic. In the last financial year alone, the board required a staggering Ksh.48 billion to meet its obligations but received only Ksh.26 billion. This significant shortfall left over 100,000 students without full financial support, with some receiving only upkeep funds while tuition fees remained unpaid. Geoffrey Monari, HELB CEO, painted a grim picture: "We paid upkeep for some, but not tuition. Second semester is worse — we haven’t paid tuition at all."
While HELB prioritized student upkeep to quell immediate unrest and potential protests, the ripple effects of this underfunding are now choking universities and TVETs (Technical and Vocational Education and Training institutions). These institutions are struggling immensely to remain financially viable due to HELB's inability to remit promised tuition fees. Monari candidly admitted, "Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough." This precarious situation threatens the operational stability of institutions vital to national development.
Adding insult to injury, a significant portion of HELB's financial woes stems from a widespread culture of loan default. While the board is cash-strapped, thousands of past beneficiaries are reportedly living comfortably, securing lucrative jobs and acquiring luxury items, yet blatantly dodging their repayment obligations. This widespread delinquency is a major drain on the revolving fund meant to support future generations of students.
To turn the tide against defaulters, HELB is now seeking enhanced access to personal data, specifically from the Kenya Revenue Authority (KRA) and the National Transport and Safety Authority (NTSA). This strategic partnership aims to meticulously track down non-compliant beneficiaries and enforce loan repayments. "We’re working with KRA and NTSA. Some have bought cars but won’t repay their HELB loans — that has to stop," Monari firmly stated, signaling a robust crackdown on those who default.
HELB is also proposing sweeping structural reforms to secure sustainable, long-term funding for higher education. A key proposal on the table is the introduction of a 3% education levy drawn from VAT, similar to Ghana’s successful model, which allocates 2.5% of its VAT to education. "We’re proposing a 3% VAT allocation to fund higher education — just like Ghana does with 2.5%," Monari highlighted.
Another innovative solution being considered is a voluntary savings scheme for parents, to be managed directly by HELB. This scheme aims to alleviate pressure on government loans and cultivate a culture of long-term investment in education within families. Julius Melly, Education Committee Chairperson, expressed support for the concept: “Parents can save, earn dividends — and even borrow from it. It’s like any other investment fund."
However, time is of the essence. HELB has issued a dire warning: unless bold and decisive action is taken swiftly to secure new funding, the upcoming September intake could be devastating, potentially locking out thousands of deserving students from accessing higher education. The unfolding crisis demands immediate attention and comprehensive reforms to safeguard the future of Kenya's youth and its human capital development.
