The Higher Education Loans Board (HELB) has said more than 140,000 students will not receive loans due to the budgetary cuts.
This comes after the government cut the funds it allocates to HELB by more than Ksh. 5billion. These budgetary cuts have targeted various government ministries.
Moreover, the Higher Education Loans Board said there was an increase in the number of defaulters, adding that it was affecting other beneficiaries of the education system.
HELB CEO Charles Ringera, also noted that more than 500,000 students had applied for the loans but only 341,000 would benefit.
Ringera noted that HELB has received Sh14.8 billion which is Sh5.7 billion less than their budgetary demands translating to a reduction in the number of beneficiaries.
“Due to the budgetary cuts, the number of students seeking HELB loans will drop this year but we hope that the number will rise in the coming year,” he stated.
Also Read: Safaricom Unveils HELB Mobile Wallet for Students to Receive Loans through Mpesa
In addition, Ringera noted that more than 107,000 graduates had delayed in servicing their loans with the numbers increasing around July of every year.
“Currently the repayment rates stand at 68 per cent but this board is keen to make sure we raise it to 76 per cent by the end of the year,” he added.
The HELB boss further reported that universities countrywide were facing a financial crisis which had affected their operations and service delivery.
He however stated that in efforts to address the current financial crisis, HELB had started working closely with counties and corporates towards resource mobilization.
While addressing the media after the launch of HELB Mpesa app in Naivasha, Ringera praised Safaricom noting that the app would ease the process of receiving HELB loans and repayment for the students.
“Previously, students had to open accounts to access the loans but with the new partnership with Safaricom, things will be easier and faster,” the HELB CEO said.
Likewise, Safaricom Chief Financial Officer Esther Waititu stated that the app could also be used to pay the HELB loans by the students.
She said the app is very secure and that the students would easily access the cash for their upkeep and to pay their fees.
“For years, students have suffered from seeking bank accounts to access their loans but under this app, the cash will be available on their mobile phones,” she said.
