Why KMTC students will have to wait longer to reap the rewards of HELB directly.
Kenya Medical Training College (KMTC) students are facing obstacles in accessing funds from the Higher Education Loans Board (HELB) due to a budget deficit of Sh19 billion and a lack of clear legal guidelines.
Julius Ogamba, the Education Cabinet Secretary, informed the National Assembly’s Joint Committee on Education and Health that the ministry wants to assist all tertiary institution students, but is restricted by current regulations.
Mr. Ogamba informed legislators that when it comes to the budgeting process, organizations develop their budgets with the help of their respective line ministries. He clarified that HELB, for example, creates its budget in collaboration with the Ministry of Education, whereas KMTC works with the Ministry of Health for its budget preparation.
Mr. Ogamba informed members of Parliament that it is crucial to understand that certain universities and training institutions, such as KMTC, are not under the jurisdiction of the Ministry of Education. This distinction has an impact on the budgeting procedures carried out by the National Assembly.
The education CS mentioned that due to the sector-based line-Ministry budgeting process, HELB does not receive enough funding to help other tertiary education and training institutions that are not under the Ministry of Education.
Mr. Ogamba informed the joint committee that the budget received by HELB from the exchequer is typically allocated for a specific number of students in universities and other educational institutions under the Ministry of Education.
Mr. Ogamba mentioned that many tertiary education and training institutions outside of the Ministry of Education do not receive funding because HELB doesn’t have enough budget.
The CS officer informed the committee that funds allocated from the treasury for the institutions under its supervision are designated for a certain number of students.
Mr. Ogamba stated that the current resources of HELB, which show a shortfall of Sh19.7B, are designated for a certain number of students in universities and Technical Vocational Education and Training (TVET) institutions.
According to the documents presented to the joint committee, the ministry requested a loan of Sh1,394,443,131 for 122,634 KCSE 2023 students in the Financial Year 2024/25. However, they only received Sh13,768,404,874, resulting in a shortfall of Sh12,373,961,743.
Additionally, the department faced a shortage of Sh7,298,179,901 in funds during the same fiscal year to assist students who took the KCSE in 2023 and enrolled in different Technical Vocational Education and Training (TVET) programs.
Mr. Ogamba said that many post-secondary education institutions not under the Ministry of Education do not receive funding due to a lack of budget from HELB.
The CS informed the committee that with sufficient resources, the ministry is willing to assist students in all tertiary institutions not under its jurisdiction.
“The Ministry of Education and HELB are prepared to collaborate with all parties to guarantee funding for students in tertiary educational institutions. This will entail allocating extra funds to HELB. Therefore, we will be seeking assistance from the two department committees to ensure this provision,” stated Mr. Ogamba.
Despite the restrictions in funding, Mr. Ogamba informed members of parliament that HELB has collaborated with different institutions outside the ministry to offer financial assistance to students using resources from their budgets.
For example, Mr. Ogamba stated that HELB has given KMTC financial assistance amounting to Sh1.2 Billion for the 2022/2023 and 2023/2024 fiscal years, using funds received from the Ministry of Health.
The CS informed the committee that from 2014 to 2019, HELB gave loans totaling Sh468 million to KMTC students, with funding received from USAID, a group that has been dismantled by the recent US President, Donald Trump.
Balambala MP Abdi Shurie raised the issue of KMTC students being excluded from accessing the fund, stating that it was discriminatory towards them.
“Why are KMTC students not eligible for HELB support unlike students from other public institutions?” He inquired.
When HELB was established, its primary purpose was to provide financial support to college students exclusively. Nevertheless, following the approval of the TVET Act in 2013, the organization expanded its scope to include funding for vocational training students at different institutions under the jurisdiction of the Ministry of Education.