STUDENT LOANS

Varsity stakeholders decry funds misuse if Helb is scrapped

The proposal means universities will receive funds in one batch

In Summary
  • University of Nairobi Student Association chairperson Melvin Thogo said it is the easiest way to disenfranchise students of Helb.
  • Lecturers also opposed the move, saying the merger is likely to interfere with the transparency of the funds disbursed.
Students at the University of Nairobi
EDUCATION: Students at the University of Nairobi
Image: UoN

A proposal by President William Ruto to centralise higher education funding drew in lots of reactions.

If implemented, the plan will see two major bodies being diluted, to form one main funding body.

Speaking in Mombasa during New Year's, Ruto said the sector is set to undergo a raft of reforms.

This is even as the presidential working party on education reforms is expected to submit its second preliminary report this month.

"The government will establish the National Skill and Funding Council that amalgamates Helb, TVET and University Funding Board,"Ruto said.

This he said will bridge the current higher education funding gap of up to 45 per cent.

If Helb is scrapped, it means universities will receive funds in one batch.

Funds meant for the differentiated unit cost and students loans will all be disbursed by one body.

But university students said this would lead to mismanagement of these funds.

University of Nairobi Student Association chairperson Melvin Thogo said the plan will not be a solution to the funding crisis in universities.

"While this may look attractive at face value, this is the easiest way to disenfranchise students of this fund," Thogo said.

The UNSA chairperson was making submissions to the presidential working party on education reforms.

"Amalgamating the funds means the university administration will directly receive the money and then disburse them to students," Thogo said.

Ruto revealed plans to establish the National Skill and Funding Council, which will be in charge of financing institutions.

But questions have been asked on the progress of current student loans beneficiaries, if Helb is scrapped.

Lecturers also opposed the move, saying the merger is likely to interfere with the transparency of the funds disbursed.

UASU secretary at the UoN chapter Maloba Wekesa said merging the mandate of Helb and UF will be a huge mistake.

He said the two bodies should be left to operate independently within their mandate.

"It would be ill-advised if the Higher Educations Loans Board, which is burdened with the logistics of student loans, were to be merged with the University Fund," Wekesa said.

The union secretary added that university funds should be budgeted and funnelled through the University Fund semi-autonomously from the ministry.

The universities' funding board is mandated to develop transparent and fair criteria for the allocation of funds to public universities and issue conditional grants to private universities.

UF also apportions funds to public universities and issues conditional grants to private universities in accordance with the criteria established.

The mandate of Helb is to source for funds and provide financing (through loans, scholarships and bursaries) to Kenyans pursuing education in institutions of higher learning in and outside Kenya.

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