At least 153,292 students set to join university in September 2024 could miss admission due to budget cuts and under-funding of the Higher Education Loans Board (HELB) and the Universities Fund by the National Treasury.
This is after President William Ruto ordered budget cuts across all government departments and agencies following the withdrawal of the Finance Bill 2024.
Dr. Beatrice Inyangala, Principal Secretary, State Department for Higher Education and Research while appearing before the National Assembly Committee on education on Thursday July 18, revealed that the ministry has budget shortfall of Ksh 5 billion.
This translates to a funding gap for the HELB and for the Universities Fund, affecting scholarships and loans for students.
“This leaves a total 153,292 first-year students who sat for their KCSE exams in 2023 and who were placed by Kenya Universities and Colleges Central Placement Service (KUCCPS) in universities inadequately funded. The students are due to report to their respective Universities in September 2024, “reads documents tabled by the State Department of Higher Learning on the Supplementary Estimates 1.
Budget Cuts for HELB
HELB allocation for the 2024/2025 financial year has been slashed by Ksh710 million while the Universities Fund has dropped by Ksh2.6 billion.
According to the new estimates, the HELB allocation has been reduced to Ksh31.18 billion from an earlier allocation of Ksh31.89 billion, while University Funding has been cut to Ksh16.921 billion from Ksh19.55 billion.
Also Read: How to Apply for HELB Loan Without National ID Card
Notably, this allocation is intended for cater only to students in their second to sixth years in the higher institution.
Beatrice Inyangala disclosed that the continuous underfunding by the Treasury now leaves the State Department with a Ksh22.9 billion budget deficit- comprising of Ksh13.7 billion under Helb and Kh9.1 billion under the Universities Fund, which would affect funding of loans and scholarships to students across the country.
According to documents scrutinized by the Committee, the Government sponsored students in the private universities Programme has been reduced by Ksh 1.7 billion.
This brings the revised allocation to Ksh 500 million and currently the total number of continuing state sponsored students in private universities stands at 67,500.
Committee Calls for Engagement Between the Two Ministries
Nyamira County MP, Jerusha Momanyi stated that the committee needs to talk to the National Treasury to ensure that the most critical areas are adequately funded.
Also Read: HELB Loan for Civil Servants of Up to Ksh500K; Requirements & How to Apply
National Treasury officials struggled to explain their radical decision to cut funding, admitting that they had not consulted the State Department on the matter.
“We did not consult with the department because this is not a normal supplementary budget. However, we hope to sit down and rationalize after this,” said Nehemiah Odero from the Treasury.
The committee chair Julius Melly directed the Ministry and the Treasury to engage in consultations “to ensure adequate funding for the critical sectors under the Higher Education Department such as student funding.”
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