MKU Pro Chancellor urges the State to seek extra funding for cash-crunched HELB

By James Wakahiu
The State has been urged to be more innovative and to think
outside the box in funding students in universities and other
institutions of higher education in the country.
Dr Vincent Gaitho, Pro-chancellor at Mount Kenya University
(MKU) says the government now has several sources of funding
which are opportunities to boost cash inflows to the Higher
Education Loans Board (HELB) for later access by desperate
students. “The first one is the Unclaimed Financial Assets
Authority which is holding about Sh45 billion lying idle. Some
of these funds can be used to boost HELB but to be repaid
later,” he said.
Dr Vincent Gaitho, who also chairs the KEPSA Education
Sector Board, was speaking in a panel discussion on the
government’s new university funding model hosted by a local
TV station at Machakos University. The model has been critized

by students and their parents as discriminatory, inefficient and
being wrought with system delays.
The Pro Chancellor said multinational and other local corporates
making and declaring super normal profits should also be
encouraged to donate funds ( as a form of Corporate Social
Responsibility (CSR) to boost HELB’s revolving funding to
higher education students.
“Recently, the Ethics and Anti-Corruption Commission
(EACC) handed over corruptly acquired assets worth more than
Sh5 billion to President William Ruto. These assets can be given
to HELB to fund students in institutions of higher learning,” Dr
Gaitho said.
In a ceremony held at State House on September 11, EACC’s
CEO Twalib Mbarak handed over through the President to the
Cabinet Secretary of the National Treasury in trust, titles to the
various recovered properties. The corruptly acquired assets
included 35 title deeds measuring 18.71 acres with a total value
of Sh5 billion and cash assets totaling Sh511.4 million.
According to Dr Gaitho, government allocation per students
sponsored by the state in private universities dropped from
Sh70, 000 when the programme started in 2016 to about
sh40,000 when the project ended. This forced the private
institutions to help the students scramble for bursaries,
scholarships and other funds to close the gap.
Today, private universities are not getting money directly from
the government but are admitting a lot students receiving loans
from HELB.

The Head of Lending at HELB, Mr King’ori Ndegwa, admitted
during the interview that there are delays in disbursing money to
universities, colleges and student accounts because of competing
demands at Treasury. “This might force reporting students to
conduct fund raisers (harambees) in the meantime so as to meet
personal needs and requirements by the institutions,” he added.
Dagorreti North MP, Beatrice Elachi, said a Bill is in process in
Parliament to harmonise all the bursaries (from national and
county governments, CDF, parastatals and the private sector)
currently funding higher education to be centralised. She called
on HELB to facilitate students without national identity cards
(IDs) to access funding. “HELB should also make it easier for
students to apply for loans,” she pleaded.
However, according to King’ori of HELB, 55,000 new students
without IDS have been allowed to use their KCSE index
numbers and birth certificates to access funding.
Meru University Vice Chancellor, Prof Romano Odhaimbo,
warned students that whereas the fruits of higher education are
normally sweet, the path to reap the fruit is tough, depressing
and bitter. He said the State has set up a committee that includes
student leaders to discuss the way forward on the new funding
model.
The VC said he himself was supported by well-wishers from
primary school to Form Six. At university, he was funded by the
government, while German Academic Exchange Programme
sponsored him for his Masters and PhD education.

He said out of 153,000 students who scored C+ and above in the
2023 KCPE results, 146,000 have signed on for assistance from
the new funding model. “Public universities are owned by the
State; vice chancellors are only CEOS. University councils are
in charge of overall administration, budgets and approval of
expenditures. Internal and government external auditors ensure
that the funds are not being misused,” he said.

Photo/MKU pro-chancellor and National Association
of Private Universities in Kenya Secretary General Dr.
Vincent Gaitho.


Machakos University’s Deputy Vice Chancellor in charge of
academic affairs, Prof James Mwola, said they were expecting
about 3,000 First Years, of whom about 80 per cent had reported
by last week. However, most of the entrants have been placed in
Bands 3 and 4 and have been forced to appeal to HELB. “These
are genuine cases,” he said, asking students to file correct
information in their appeals.
Mr Emmanuel Manyasia, Executive Director at Usawa Agenda
accused HELB, the government and Vice Chancellors of being
economical with the truth. “A VC told us recently that although
students are being admitted before clearing their fees in full, but
they cannot sit for examinations as per the rules of university
councils,” he said.
The forum came on the backdrop of the recent roll-out of the
new, controversial Variable Scholarship and Loan Funding
model for university students, which has brought changes in
how university students pay their fees. Previously, the
government was funding university education through a
Differentiated Unit Cost model- where its contribution to public
universities was expected to be 80 per cent.

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