HELB chairman Ekwee Ethuro on Thursday, April 27, alleged that thousands of students dropped out of school after they failed to receive their Higher Education Loans Board (HELB) loans.
Speaking during the HELB Universities Consultative Forum, Ethuro faulted the government for the plight of the students stating that it allocated the board less funds than requested.
The chairman stated that 142,361 students were affected by the budget cut, adding that in the 2023/2024 financial year, the board requested a budget allocation of KSh25 billion based on the demand but was allocated Ksh17 billion.
“In the coming financial year 2023/2024, we requested for budget allocation of Ksh25 billion based on the current demand, but we were allocated Ksh17 billion, hence a deficit of Ksh8 billion.
Additionally, he pleaded with the government to release the funds in good time to avoid cases of deferment and other inconveniences to the students.
At the same time, the chairman stated that HELB was seeking alternative funding sources because of financial constraints. Demand for the funds was also increasing, necessitated by the enrollment of new students.
“My Board has undertaken to lead from the front in regard to resource mobilization, including debt recovery.
“We are actively exploring external resource mobilization instruments like Asset-Backed Securitization to progressively bridge the funding gap,” Ethuro added.
On the other hand, HELB also launched a mobile wallet payment solution for students in Higher Education Institutions to access and utilize their loans.
The mobile wallet payment could be accessed through USSD code *642#.
HELB stated that the digital wallet would also enable users to access loan statements and repay their loans while allowing beneficiaries who had already graduated to track their payments.
“This solution empowers beneficiaries to apply for subsequent loans, access HELB upkeep funds, withdraw funds, view loan status, access loan statements, and repay loans, all from feature phones, Android and iPhone apps.
“The Higher Education institutions continuing students can receive notifications and access the utilization statement for financial planning, while the beneficiaries who have graduated can track their payments and generate loan statements,” the board chair stated.
