💡 Breaking News: The National Treasury has proposed a 10% budget cut for the Higher Education Loans Board (HELB) in the upcoming financial year, starting this July. Specifically, they plan to reduce the budget allocated to HELB by Sh3.7 billion1. This decision could have significant implications for financially disadvantaged students who rely on HELB support to pursue higher education.
In the last financial year, approximately 140,000 students missed out on HELB funds due to a budgetary reduction by the National Treasury. The shortfall of Sh5.7 billion impacted the number of beneficiaries, with only 341,000 out of over 500,000 applicants receiving funding. HELB CEO Charles Ringera highlighted the challenge posed by rising defaulters, contributing to the strain on the education system. The board aims to improve loan repayment rates from the current 68% to 76% by year-end.
Despite these challenges, there have been collaborative efforts with counties and corporate entities to address the crisis through resource mobilization. The reduction in funding will undoubtedly be a topic of concern for students, universities, and education stakeholders across Kenya1.
📚 Learn more: Uncertainty for university students as HELB faces 10% budget cut
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