Speech By Dr. Beatrice Muganda Inyangala, Principal Secretary, State Department For Higher Education And Research, Ministry Of Education, During The Higher Education Loans Board – Universities Consultative Forum Opening Ceremony On 27th April 2023 At The Lake Naivasha Resort

Speech By Dr. Beatrice Muganda Inyangala, Principal Secretary, State Department For Higher Education And Research, Ministry Of Education, During The Higher Education Loans Board – Universities Consultative Forum Opening Ceremony On 27th April 2023 At The Lake Naivasha Resort

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Chairman, HELB Board Directors Present, CEO, HELB University Administrators & Student Leaders HELB Management and Staff, Invited Guests, Ladies and Gentlemen, It is my pleasure to join you here today to participate in this very important Stakeholder Engagement Forum - The HELB 2023 Universities Consultative Forum. As you are aware, the government is a key …

Chairman, HELB Board Directors Present,

CEO, HELB

University Administrators & Student Leaders

HELB Management and Staff,

Invited Guests,

Ladies and Gentlemen,

It is my pleasure to join you here today to participate in this very important Stakeholder Engagement Forum – The HELB 2023 Universities Consultative Forum.

As you are aware, the government is a key stakeholder in university education and is always keen to engage other stakeholders so as to create an enabling environment for university education.  The ultimate goal is to enhance the outcomes of university education, specifically to empower the youth to contribute and also benefit from the bottomup economic transformation agenda.

Since 1963, Kenya has made great strides in education, training and research, challenges notwithstanding. Financing remains a key enabler for achieving higher education sustainability.

We are aware that the National fiscal space is tight. This is triggered by, among other things, the geo-political crisis in the Ukraine/Russia, post Covid-19 shocks, climate change manifested through the extended drought, and, the exchange rate fluctuation among others issues. In the midst of all these shocks, we must keep our eyes focused on our Vision 2030. The overarching question is – what can we realistically achieve within the remaining 7 years? How can we accelerate progress towards our set targets, specifically, in the education sector?

The Government through the Ministry of Education will continue supporting higher education through budgetary appropriations as anticipated in the MediumTerm Expenditure Framework (IV) amidst the competition for available resources.

With the present budgetary constraints – it cannot be business as usual. The need to diversify funding streams for university education is urgent. We need to intensify commitments by private sector and foundations through shared-value partnerships that increase access to catalytic funding.

The current context has also framed the evolving university reforms. We are working closely with our universities, not only to explore alternative sources of extra-budgetary but also to develop mechanisms of assuring value for money.

Ladies and Gentlemen,

Let now me highlight some of the key aspects that are expected to shape the future of our universities:

Governance reforms that entail greater autonomy for universities;
Creating university niches in areas of comparative advantage;
A new funding formula that is innovative and sustainable;
Diversified revenue streams that will be achieved through – scaling up traditional revenue sources; and, seeking new sources of funding (these will include but not be limited to –optimizing assets, endowments, commercializing research, services to Government and many more);
Increasing the quantity and quality of research by institutionalizing appropriate incentives for staff;
Driving operating efficiencies (by leveraging on technology, cost containment measures, strengthening internal controls and many more);
Managing growth to avoid pending bills.

In the Financial Year 2023/2024, the process of reform will be formalized through the performance contracting process that is coordinated at high level – the Office of the Prime Cabinet Secretary. While the reforms will be cross cutting, great emphasis is placed on funding and prudent management of financial resources.

Ladies and Gentlemen,

As we explore these efforts, it is clear that all stakeholders have rights and responsibilities.

I urge all stakeholders to play their part effectively and to work collaboratively so that we can deliver as one to maximize impact.

It is worth noting that our students take center-stage in these reforms. The goal is to ensure that every young person is adequately supported to nurture their talents, and that, we prepare ethical and visionary leaders of tomorrow who will steer our country to higher levels of prosperity in the future.

I therefore welcome all the young student leaders and change-makers joining our conversation today.

We are totally committed to making higher education work better for you so that you can optimize its benefits.

Through facilitating access to equal opportunity in education, the Government is enabling vertical mobility for all. This is particularly significant for vulnerable and marginalized families that have been consistently afflicted by intergenerational poverty. Young successful people from these families will pull them out of cyclicpoverty.  

Youth voices are therefore a premium in all consultative forums. I encourage our youth and our people enabled differently to speak up, and, influence all decisions made on how to empower them.

Ladies and Gentlemen,

I note that HELB has empowered the dreams of more than 1,339,627 Kenyan students and disbursed over KShs.147.57B. By 31st March 2023, there were 713,484 mature loan accounts worth KShs.93.49B while 626,143 loan accounts holding KShs.54.08B had not matured for repayment. Further, as of 31st March 2023, there were 713,484 mature loan accounts holding KShs.93.49B. Out of these mature loans, 320,898 loanees holding KShs. 50.11B are repaying their loans while a total of 125,609 loanees holding KShs.15.22B are in default. A total of 266,977 loanees holding KShs.28.16B have completed repayment of their loans. I would wish therefore, to take this opportunity to commend HELB for their effort thus far, in establishing a sustainable revolving fund.

Ladies and Gentlemen,

I am also aware of the situation in our public universities including the issue of huge pending bills, and the current funding gap for student loans. While the government is willing to support the institutions, the fiscal situation in the country is not good. We recommend that institutions review and expand their revenue sources to improve cash-flow.

Government is committed to addressing the funding gap and funding deficit for student support. The cost of keeping a student in the university has steeply increased and news of students struggling to make ends meet has recently hit headlines. The average loan granted per student has dropped in successive years to a low of Kshs. 42,160 per year and may drop further if not effectively addressed. The expected 80% Grants through the Differentiated Unit Cost [DUC] has reduced consistently to a low of 49.51%, leaving students/institutions with a huge financing deficit.

I am particularly pleased with HELB’s effort to explore external resource mobilization instruments like Asset Backed Securitization [ABS] to progressively bridge the funding gap and establish a sustainable financing model. The government will provide necessary support to your endeavour in establishing a sustainable revolving fund for the benefit of our current and future generations. I also take note of your request to consider donations channeled to HELB be tax allowable; lobbying parliament to pass legislation to make HELB central distribution point for students financing for National Government Constituency Development Fund [NGCDF] and County Bursaries; passing a Higher Education Levy or considering HELB for the Training Levy paid by companies, and to review the HELB Act to effectively support Resource Mobilization. I want to assure you of government’s commitment to improving the quality of tertiary education. My ministry will work closely with The National Treasury and other arms of government to address these policy issues to effectively consolidate the resources in order to create a more sustainable student financing institution.

Ladies and Gentlemen,

As we respectively continue to deliver on our mandates, I would urge all higher education institutions to embrace Mobile Payment Solutions such as the one to be launched today, HELB Mobile Wallet Payment Solution. This digital solution will ensure that our students and Higher Learning Institutions are accountable for the funding they receive from HELB more efficiently and accurately. Accountability of public resources continues to be a key requirement in application of public resources. As Public Officers we must utilize public resources observing good stewardship and high integrity.

Finally, I note that HELB has embarked on the 2024 – 2028 Strategic Plan Formulation. I want to remind you of the quote by Oren Harari that “Electric light did not come from the continuous improvement of candles”. I therefore, want to challenge you to adopt a more innovative and imaginative approach to the strategy formulation and avoid the risk of being limited by a ten-inch frying pan mentality.

As I close, I wish to remind students, the student leaders and university administrators on the following messages which we need to take back with us:

1) The government is leveraging on ICT to deliver more efficient information and public services by digitizing government records and services. I,therefore encourage you to embrace this initiative by HELB of providing you with an efficient Mobile Wallet Payment Solution.

2) The students are also reminded to be careful not to fall prey to conmen including on Fake Social Media Accounts when applying for HELB Loans and other Services. HELB services including the loan application are free services and are only accessible through official HELB platforms and channels.

3) Students are further reminded to be financially prudent with the resources provided to them and especially the HELB Loan by using it for the intended purpose as this is a Loan that will be due for repayment after the moratorium period ends.

4) More importantly, please #TellTheTruth when applying for HELB Loan. It is unfortunate when Loan Applications fail the MTI Compliance and Integrity Test primarily because the Parental Occupation & Family Income stated by these applicants is found to be inconsistent with findings of the data validation process. Such students therefore risk being barred from applying for subsequent HELB Loans. The philosophy behind this is to inculcate a culture of integrity and ownership

With these remarks, I take this opportunity to wish you fruitful deliberations over the course of the two-day forum.

I hereby declare the 2023 Universities Consultative Forum opened!

THANK YOU AND GOD BLESS YOU ALL!