More than 143,000 students scored C plus and above from 2020’s KCSE examinations. All these students will get direct entry to Universities ( private and public). Most of people in rely on Helb loans in Kenya.
This loan is important because it subsidizes the fee required in various universities in Kenya. However, at least 95,000 students are set to miss out this loan.
According to report shared by the Helb chief executive officer they are likely to miss this loan because of budgetary constraints. Worse still, the luck ones to receive the funds from Helb will receive the reduced amount of 38,000 down from 45,000 because of budget cuts.
This news is a big blow to thousands of university students who depend on the loans to fund their education, coming at a time the economy is reeling from the effects of the Covid 19 pandemic and resultant loss of livelihood for millions of Kenyans.
“We have lost about Shs 1 billion due to Covid 19 impact on loan recoveries, so in total this year we are looking to cut off f about Shs 3.2 billion, which will not be able to get for purposes of funding students budget. That means about 95,000 students will go unfunded this year.
They have just resumed their classes and we are worried about how we will be able to manage that situation but that is how it is. There are no revenues flowing into the country, people are unemployed so that cannot be able to pay their loans, the CEO of Helb loans said.”
Although 143,000 students qualified to join university this year, not all of them will be require loan intervention, about 80% of them require loan intervention and Helb will have to get into the budgeting mode as the students pick the courses.