Some Moi University students are broke and starving following a delay by the Higher Education Loans board to disburse money.
On Monday, Dean of Students John Ayieko in a memo to students asked those who are starving or anyone who knows them to report to his office through their class representatives or student leaders.
The Star has established that Moi University has written to Helb to expedite the release of funds to save the dire student situation.
Charles Ringera, the loans board chief executive, said that it is yet to receive Sh5.7 billion for the students to get this semester's loans.
The money is released in two tranches over the two semesters in an academic year.
Helb provides up to Sh37,000 to students to support their tuition and upkeep on campus.
According to Helb, the student loan is supposed to be released at the beginning of September for the first semester and the second tranche by January.
Most public universities resumed in-person lectures in January, adopting a partial model where some students remained at home and are still taking classes online.
More than two months after their return, the student loans expected to be sent in January are yet to reflect in their accounts.
The situation is worse for some first-year students who have yet to receive monies for September.
Ringera said the result is that some students have not been able to pay for their tution and others were unable to report to university for lack of fare.
In December, Ringera told MPs the loans board estimates that university students would need about Sh200,000 annually to meet their day-to-day needs.
“Given that Helb provides about Sh37,000 currently then it means the students or the household has to raise another Sh162,000,” Ringera said.
Bigger troubles
Ringera said the board facing another bumpy ride with the proposal by MPs to reduce the interest charged on student loans.
The board charges a 4 per cent interest but lawmakers want it brought down to two per cent or be scrapped.
Igembe South MP John Paul Mwirigi who made the proposal also wants loanees to only start paying one year upon securing employment as opposed to a year following completion of studies.
Ringera said the proposal would shrink the loans offered to students further as Helb is a revolving fund.
He said that such a proposal could mean that Helb would not pursue those in self-employment to pay up loans.
In a document presented before Parliament, Ringera said that by reducing the loans to just 3 per cent, the board stands to lose Sh693 million in one year. That money can provide loans for 18,730 students.
He said the current interest cap at 4 per cent is reasonable to generous noting that it is way below the annual national average inflation which is 5.41 per cent.
(edited by o. owino)
