Arts and humanities students could miss out on new benefits from the Higher Education Loans Board in future since they take a long time to repay loans.
Helb CEO Charles Ringera said they wait for a long time for the students to clear loans, because most of them are jobless for many years after graduation. “The more we put money in humanities, the more difficult it becomes to recover,” he said.
Ringera said only 49 per cent of humanities graduates get jobs within the first year of graduation, compared to 99 per cent of graduates of technical courses like engineering and medicine.
Ringera spoke in Nairobi at the launch of the Sh500 million Afya Elimu Fund for diploma medical students. The money is channelled through Helb. “As a fund this is where we should be putting our money, because there are quick returns,” he said.
While medical students graduate straight to jobs, humanity graduates take about five years to secure a job in Kenya, according to the 2014 Universities, Employability and Inclusive Development study.
The study was authored by several African institutions, including Kenyatta University. Helb loans attract a Sh5,000 annual penalty after graduation, on top of the four per cent interest rate. It is a revolving fund and the recovered money is lent to students in universities.
Kenyan universities churn out about 50,000 graduates every year, most of whom join the 2.3 million unemployed youths, Education ministry indicates. Ringera said they could not withdraw the penalty for jobless graduates, because it is in the law.
He encouraged young people to start paying small amounts to avoid penalties. “It is easier for our generation today to buy a German car than to repay Helb loans,” he said.
Helb lends university students between Sh40,000 and Sh60,000 every academic year. The Afya Elimu Fund was founded by USAID and established through Intrahealth, a Nairobi-based NGO.
Programme head Dr Caroline Karutu said they target diploma students, because they form the bulk of health workers and also because degree students already benefit from Helb funds.
Only 9,000 diploma students have benefited from the fund, each getting at least Sh40,000.
Last month, Ringera said university students seeking loans for their education will be required to pass a financial test before getting the cash. He said said 40,000 of the 61,000 undergraduate applications have passed the test.