The Chief Guest, Principal Secretary, State Department for Technical & Vocational Training, Ministry of Education, Dr. Esther Thaara Muoria, Fellow Board Members; TVET Administrators & Students Leaders, HELB Management and Staff, Invited Speakers, Ladies and Gentlemen, Good Morning. It is with great pleasure that we are here today, to participate in this very important 2024 …
The Chief Guest, Principal Secretary, State Department for Technical & Vocational Training, Ministry of Education, Dr. Esther Thaara Muoria,
Fellow Board Members;
TVET Administrators & Students Leaders,
HELB Management and Staff,
Invited Speakers,
Ladies and Gentlemen,
Good Morning.
It is with great pleasure that we are here today, to participate in this very important 2024 TVET Consultative Forum. As Stephen Covey said, “When trust is high, the dividend you receive is like a performance multiplier, elevating and improving every dimension of your organization and your life…In an organization, high trust materially improves communication, collaboration, execution, innovation, strategy, engagement, partnering, and relationships with all stakeholders.” In the same spirit, this forum is held every two years to engage with the TVET fraternity on ways to improve our service delivery with regards to TVET financing and excellence in service delivery.
I, therefore, wish to recognize the contribution made by all stakeholders in the tertiary education sector and especially TVET Institutions, including the comrades, despite the emerging challenges. My Board continues to appreciate that despite the competing Government priorities and budget limitations, the Government is committed to ensuring that the Kenyan youth access TVET education. This is demonstrated by the allocation made to HELB yearly.
The theme for this year’s forum is “LEAVING NO STUDENT BEHIND: ALIGNING TVET FUNDING AMIDST EDUCATION SECTOR REFORMS FOR SUSTAINABILITY.” I take this opportunity therefore, to call upon the TVET fraternity to continue walking with us on this journey of working towards not only achieving sustainable and transformative student-centered financing for tertiary education but also producing graduates of good character, integrity and who are more self-reliant.
Ladies and Gentlemen,
As HELB, we have always embraced Strategic Planning as a key performance improvement initiative in enabling successful delivery of our mandate. Our new Strategic Plan is dubbed “The HELB Plan 2024-2028” and envisages innovations, financial sustainability, equity, inclusivity, customer obsession and a robust Fintech Ecosystem for service excellence which empowers HELB staff to in turn, empower Kenyans Dreams and drive organizational excellence for posterity. Our strategic focus is firmly anchored in alignment with both national and international development agendas, including the Bottom-Up Transformation Agenda (BeTA), Vision 2030’s Medium Term Plan IV, Africa Agenda 2063, and the United Nations’ Sustainable Development Goals (SDGs). The HELB Plan 2024 – 2028 strategic pillars are: Customer Obsession, which seeks to deliver customer convenience; Financial Sustainability & Stewardship; Innovation and Digital Transformation and Our People Centricity, Governance, Risk & Compliance.
The HELB Plan meticulously considers internal and external factors influencing HELB’s operations. Our commitment to broader sustainable development is evident through alignment of our plan with national development priorities spanning agriculture, healthcare, housing, MSMEs, and the Creative Economy and Digital Superhighway. This HELB Plan 2024 – 2028 underscores our dedication to providing affordable and accessible higher education financing. It presents a well-structured and integrated approach that addresses internal and external factors, with meticulous monitoring and risk management critical for successful implementation.
Further, in compliance with the Government’s plan to digitize services, HELB has prioritized automation and digitization of services. We have integrated with e-Citizen (Government integrated service portal) for public services, business continuity, ICT governance, and innovations for service delivery. ICT governance and Risk-based assessment of implementations of critical systems and integrations to guarantee business continuity into the foreseeable future is a key plank in the digital conversation.
Ladies and Gentlemen,
Notably, since inception to 31st December 2023, HELB has empowered dreams of 1,613,411 needy students in various institutions of higher learning at a cost of Kshs. 166.67B. As of 31st December 2023, there were 915,560 mature loan accounts holding KShs.125.57B, out of which 463,390 accounts valued at KShs. 67.61B are being repaid. A total of 697,851 loanees holding KShs.41.1B have not matured. Regrettably, a further 209,857 loanees holding KShs. 30.11B still remain in default from as far back as 1975 and every effort is being made to engage them to repay, while 242,313 loanees have cleared their loans worth KShs. 27.85B.
HELB salutes and respects Kenyans who have honored or continue to honor their obligation to repay their student loans, without whom, we would not be able to deliver on our mandate of empowering dreams of needy students. As of 31st December 2023, the TVET Loan portfolio at risk [PAR] stood at 75%. Aligning TVET trainees funding amidst ongoing education sector reforms is therefore vital for effective loan recovery and financial sustainability.
Whereas it is our obligation, as HELB, to finance the needy students pursuing higher education; it is also prudent to educate them on how to manage the funds so that their loans are channeled to the rightful purpose. HELB introduced an e-financial literacy program in 2016 as part of the loan application process. This was as a result of being cognizant that HELB is typically the first financial institution that the student interacts with and that they need to understand that HELB is a loan that will need to be repaid. Furthermore, the students need to understand the HELB Loan application process including crucial details such as the reason why guarantors are important as well as why they need a national ID or birth certificate to apply for the loan to mention but a few.
I also wish to remind TVET Students of the need to #TellTheTruth when applying for HELB Loan. HELB undertakes Means Testing Instrument [MTI] Compliance & Integrity Tests for Loan Applicants. Regrettably, some trainees still fail the MTI Compliance & Integrity Test primarily because the parental occupation & family income stated by these applicants is found to be inconsistent with the findings of the data validation process. Students who fail this test will be barred from applying for a subsequent HELB Loan until they correct the parental occupation & family income status. The philosophy behind this is to inculcate a culture of integrity and ownership.
Ladies and Gentlemen,
Malcolm X said, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today”. We at HELB use this as our driving force as we continue to empower dreams of Kenyans by facilitating their education through higher education financing. This is why our central focus is on driving customer obsession culture as we strive to ensure the borrowing customers gets a delightful experience through emotional connection as they are expected to in-turn repay the loan after completion of studies in order to benefit future generations [financial sustainability].
There has been substantial growth in the number of TVET Institutions and rates of admissions in the TVET colleges and this has heightened the demand for loans and scholarships. To increase funds available for students, HELB is exploring Technology-Driven Debt Management Solutions that enhance the efficiency of debt management processes, minimize administrative burdens, and improve communication channels with TVET loan beneficiaries.
In bridging the perennial funding gap, and to ensure that NO STUDENT IS LEFT BEHIND, HELB has embarked on strategic partnerships to establish revolving funds aimed at strengthening the implementation of its mandate while at the same time building capacity for various sectors in the economy. In fact, we had an impactful stakeholder engagement on 6th March 2024 with the Non MoE Training Institutions leadership, to further explore partnership and collaboration initiatives in financing TVET trainees for sustainability and to spur economic growth.
To date, HELB has partnered with 40 partners who have brought on board Kshs.2.5B. The partners include International and Local NGOs, Corporates, County governments, Constituencies, Foundations, Ministries, Departments and Agencies, Training Institutions and High Net-worth Individuals.
Ladies and Gentlemen,
His Excellency the President launched the New Finding Model [NFM] on 3rd May 2023. HELB and other implementing agencies have since adopted the model for implementation from July 2023. NFM requires that scholarship and loans be applied from a central portal for effective means testing and trainee categorization based on individual’s level of need.
The Higher Education Financing Application portal [www.hef.co.ke] was developed and enhanced with technology integrations with stakeholders for purpose of getting prior data sets for applicants and minimize errors as well as misrepresentations was launched on 31st July 2023 by the CS Ministry of Education and has been operational and efficient since then.
As at end of December 2023, a total of 223,884 students had been allocated loans under NFM representing 73% of the targeted 307,248 applications for both undergraduate students and TVET trainees. HELB continues to receive and process the applications.
Ladies and Gentlemen,
Through the PS, Dr. Esther Thaara Muoria, in our government’s spirit of Leaving No Student Behind, I urge:
As I close, I wish you all fruitful deliberations and now take this opportunity to invite the The Chief Guest and Principal Secretary, State Department for Technical & Vocational Training, Ministry of Education, Dr. Esther Thaara Muoria, to make her remarks.
God Bless Kenya, God Bless HELB.
