Helb opens loan applications for 2019 KCSE candidates

The 125,000 students who sat last year’s KCSE and were placed in universities can now apply for loans.

The Higher Education Loans Board (Helb) has invited first-time applicants, saying  the government had put aside Sh4.7 billion to support their education.

“The Higher Education Loans Board invites applications for first time 2020-2021 undergraduate loans from Kenya students admitted in GoK-sponsored or self-sponsored programmes in public and private universities,” Helb said.

The application deadline is December 30. Unlike previous years, this year's announcement comes at a time when learning institutions are closed because of the coronavirus.

The Education ministry has asked universities to virtually admit and induct students. CS George Magoha says university reopening will be on a case-by-case basis in line with anti-Covid-19 regulations and guidelines.

Helb provides loans to learners based on the courses undertaken. In last year’s KCSE exam, 125,746 candidates met the university entry grades and more than 350,000 qualified for diploma and certificate courses.

Helb chief executive officer Charles Ringera said Sh7.6 billion had been allocated to support 196,613 continuing students, who are also expected to submit their loan applications. Another Sh4.7 billion will be made available for first time applicants.

“This will bring the overall 2020-2021 budget for undergraduate students to Sh11.2 billion, with the balance funded from loan recoveries,” Ringera said.

This means that the board must recover another Sh1.1 billion to plug the deficit.

Ringera said 61,000 Kenyans who benefitted from the loans have yet to start repaying. He said 160,076 loan accounts valued at Sh24.5 billion, which had matured for payment, were already being serviced.

Data shows 752,327 Kenyans have yet to complete servicing their Helb loans. This translates into Sh93.6 billion, which must be recovered by the lender.

By start of this year, over one million Kenyans had benefitted from the loans.  This translates into some Sh113 billion spent on students. Only 215,778 beneficiaries have cleared their loans of about Sh21.5 billion, Ringera said.

Edited by Henry Makori