HELB CEO Quotes Ksh210B As The Amount Required to Finance New Student-Centred Model
The amount needed to finance the new student-centered model, according to the HELB CEO, is Ksh210B. By 2028, university financing should be at least Ksh210 billion under the new paradigm for students.
The loan component will require at least Sh145 billion, and the scholarship component will require at least Ksh75 billion, according to Higher Education Loan Institution (HELB) CEO Charles Ringera.
Our modest modelling calculations show that Ksh145 billion will be sufficient to fund the university by 2028. The money required is Ksh210 billion, the speaker added. “Scholarships will seek approximately Ksh75 billion, so we are talking about Ksh210 billion.”
“The presence of a sizable organisation that can raise cash for the plan from sources other than the Exchequer is necessary for the viability of this new funding model. In this simulation, I look at four potential students, their transition to higher education, and the growth of TVET. The CEO stated that this figure is crucial in assisting national planners in comprehending the concept and how we might approach sustainability.
He claimed that in order to attain sustainability, they are asking for financial support from donors, foundations, independent business owners, and other stakeholders within the district.
Also Read: What you need to know about eligibility and application procedure for HELB
The council underlined how its future expansion goal was to remove reliance on the Exchequer and raise more money to support higher education. He said the optimum balance for HELB was when people were paid back. loan
Last year, HELB provided Ksh 11 billion to at least 800,000 students in TVET schools and colleges; Ksh 4.8 billion of that equaled $14.9 billion.
For this fiscal year, higher education institutions are eligible to receive 27.6 billion from HELB, 19.6 billion from the University Fund, and 4.6 billion from TVET.
The loan component pays for the student’s tuition, books, supplies for schoolwork, lodging, and food.
A brand-new issue has emerged following COVID-19: computers. Because the majority of the introductory letters you get state that students should bring a laptop, we are speaking with the World Bank about looking into the equipment lending programme. We talk about how to give them this when they enrol in college because, in most universities, laptops are a requirement.
He said that the old funding structure had been eliminated nationwide, which is where the Sh16,000 levy that institutions instituted in 1989 originated from.
The grant is designed to contribute 80% and a portion of the Ksh16,000 is planned to contribute 20% of the Distinguished Unit Value (DUC) of the house or HELB.
According to Ringera, the old financing formula’s primary objective was equity, or making sure that everyone received something, and it did not take student needs into account.
“The new funding method seeks to advance justice and equity. This is asserted following a decline in the DUC and average debt, which jumped to 48% last year as enrollment grew. It will hit 35% this year if we keep moving in that manner, he predicted.
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HELB CEO Quotes Ksh210B As The Amount Required to Finance New Student-Centred Model
