A Sh19 billion budget deficit and a lack of clear legal guidelines are the hurdles preventing Kenya Medical Training College (KMTC) students from getting money from the Higher Education Loans Board (HELB).
Education Cabinet Secretary Julius Ogamba told the National Assembly's Joint Committee on Education and Health that while the ministry would like to support all students in tertiary institutions, the current regulations do not provide that leeway.
Mr Ogamba told lawmakers that during the budgeting process, institutions prepare their budgets through their line ministries, explaining that in this case, HELB prepares its budget through the Ministry of Education while KMTC does so through the Ministry of Health.
“It is important to clarify that some universities and training institutions, such as KMTC, are outside the Ministry of Education. This reality has implications on the budgeting process as undertaken by the National Assembly,” Mr Ogamba told MPs.
“Because of the sector-based line-Ministry budgeting process, HELB is not provided with the resources to support other tertiary education and training institutions outside the Ministry of Education,” added the education CS.
Through this, Mr Ogamba told the joint committee the final budget that is released to HELB from the exchequer for funding students is usually for a predetermined number of students in universities and other institutions under the ministry of education.
“Several tertiary education and training institutions outside the Ministry of Education are not funded because HELB does not have the requisite budget,” Mr Ogamba said.
The CS told the joint committee that when money is released from treasury for the institutions under its purview, it’s earmarked to a specific number of students.
“The resources that HELB currently has which already reflect a deficit of Sh19.7B are earmarked for a specific number of students in universities and Technical Vocational Education and Training (TVET) institutions,” Mr Ogamba said.
Documents tabled before the joint committee indicate that in the Financial Year 2024/25, the ministry required Sh1,394,443,131 as loan for the 122,634 KCSE 2023 students cohort but only received Sh13,768,404,874 leaving a deficit of Sh12,373,961,743.
Further, the ministry also suffered from a deficit of Sh7, 298,179,901 in the same Financial Year to support the students who sat for their KCSE in 2023 and joined various Technical Vocational Education and Training (TVET).
“Several tertiary education and training institutions outside the Ministry of Education are not funded because HELB does not have the requisite budget,” Mr Ogamba said.
The CS told the joint committee that if the ministry can get adequate resources, then it has no problems supporting students in all other tertiary institutions that are not under it.
“The Ministry of Education and HELB are ready to work with all stakeholders to ensure that students in all tertiary education institutions are funded. This would require additional budgets to be provided to HELB. We would therefore be seeking the support of the two departmental committees to secure this support,” Mr Ogamba said.
However, despite the budgetary constraints, Mr Ogamba told MPs that HELB has worked with various institutions that do not directly fall under the ministry to provide financial support to students, based on resources provided by the said institutions from their respective budgets.
For instance, in the case of KMTC, Mr Ogamba said HELB has provided support to the tune of Sh1.2 Billion for two financial years 2022/2023 and 2023/2024), based on resources that were provided through the Ministry of Health.
The CS further told the committee that between 2014-2019, HELB provided loans to KMTC students to the tune of Sh468 million, based on support received from USAID, an organisation which has since been disbanded by the new US President Donald Trump.
The matter exemption of KMTC students from benefiting the fund was raised by Balambala MP Abdi Shurie who termed it as discrimination against the students in KMTC institutions.
“Explain why KMTC students are excluded from receiving HELB support while students from other public institutions are eligible beneficiaries? He asked.
When HELB was set up, it used to fund university students only. However, after the enactment of the TVET Act, 2013, the fund began funding TVET trainees in various Institutions under the Ministry of Education.
