Ruto's Plan To Replace HELB With New Funding System

President Ruto’s decision to scrap HELB was based on the report compiled by the task force set to review the Competency-Based Curriculum (CBC).

Marvin Chege Marvin Chege
Jan 3, 2023 - 12:54 Updated: Jan 3, 2023 - 12:58
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Ruto's Plan To Replace HELB With New Funding System
President William Ruto addresses Kenyans at State House Mombasa on Sunday, January 1, 2023. /PCS

President William Ruto's government is planning to scrap the Higher Education Loans Board (HELB) which has been the go-to funding for millions of university students for more than 10 years and replace it with a new funding alternative.

To improve the education system in the country, the government will introduce National Skill and Funding Council (NSFC) which will be better than HELB and increase funding by 45 per cent. It will also absorb the Technical and Vocational Education and Training (TVET) funding.

“Instead of different funding systems, the government will establish the National Skill and Funding Council (NSFC) that will amalgamate the existing funding bodies,” Ruto announced during his New Year's message in Mombasa.

Kenyans at HELB offices. /PEOPLE DAILY

"The new body will double the current HELB funds from Ksh11 billion to Ksh22 billion."

The NSFC will also mobilize grants, bursaries, and scholarships from private and public sponsors to cover non-tuition costs for university students.

President Ruto’s decision to scrap HELB was based on the report compiled by the task force set to review the Competency-Based Curriculum (CBC).

He also announced that the government will hire 30,000 additional teachers for basic education, as well as 3,000 tutors for TVET institutions this year.

“We intend to use our education system to develop world-class human capital. This is why, in January, we set out to hire more teachers to ensure that our primary to junior secondary transition is flawless,” he added.

The Higher Education Loans Board (HELB) is a statutory body established in July 1995 by an Act of Parliament ‘Higher Education Loans Board Act’ Cap 213A. 

It is a state corporation in the Ministry of Education. The Board is domiciled and operates within the republic of Kenya. President Ruto had promised to restructure HELB to offer interest-free loans to university students, a move that was seen by its CEO, Charles Ringera, to be costly.

He said in the financial year 2021-22, HELB was able to fund 347,166 students to the tune of Ksh14.8 billion.

“Of these students, 106,048 were from TVETs at Ksh3.9 billion, we still have some 35,137 unfunded students,” Ringera said, adding that there is a Universities Funding Board mandated to offer grants to university students.

HELB has been on several occasions accused of delayed disbursement of funds to university students who need it to finance their education and accommodation within campus grounds alongside other needs.

Moi University students carried out demonstrations in Eldoret in 2021 demanding the release of delayed loans from the Higher Education Loans Board. /THE STAR