The Chief Guest, Dr. Beatrice Muganda Inyangala, Principal Secretary, State Department of University Education and Research;

Fellow Board Members;

University Administrators & Students Leaders,

HELB Management and Staff,                                                                                                               

Invited Speakers,                                                           

Ladies and Gentlemen, 

Good Morning.

I wish to recognize the contribution made by all stakeholders in the higher education financing sector. Indeed, the sector continues to face a number of challenges predominantly related to funding constraints. Nevertheless, I want to salute all stakeholders who have in one way or another contributed through focused commitment that has assisted HELB in the milestones achieved thus far.

HELB plays a critical role in facilitating Kenyans enrolled in institutions of higher learning through provision of Loans, Bursaries and Scholarships. As a Board we remain committed to implementing the identified strategies as we continue to fulfill our mandate. This is in line with the wider Government policy objectives of transforming Kenya into a globally competitive and prosperous nation by year 2030 through development of human capital.

Ladies and Gentlemen,

To realize it’s short, medium, and long-term plans, HELB practices Strategic Planning which enables delivery of its mandate. As we draw towards the end of the current Strategic Plan period dubbed “HELB Agenda 2019-2023”, I am pleased about the milestones realized including a reformed, bolder, agile, customer centered, FINTECH enabled and Risk Intelligent organization which accords HELB employees a great place to work. HELB anchored this strategy to four thematic areas touching on Global, Continental, and National development agendas namely: The Sustainable Development Goals [SDGs], the Africa Union [AU] Agenda 2063, Vision 2030 and the previous government’s Big 4 Agenda. The HELB Agenda 2019-2023 pillars are: Customer Centered Leadership; Sustainable Financing Initiatives; FinTech Optimization for Digital service delivery and Our People, Governance, Risk & Compliance. Subsequently, the formulation of the next Strategic Plan is currently underway and will be unveiled in the coming months.

Ladies and Gentlemen,

As at today, HELB has empowered the dreams of more than 1,339,627 Kenyan students and disbursed over Kshs.147.57B. By 31^st March 2023, there were 713,484 mature loan accounts worth Kshs.93.49B while 626,143 loanees holding Kshs.54.08B had not matured for repayment. Further, as of 31^st March 2023, there were 713,484 mature loan accounts holding KShs.93.49B. Out of these mature loans, 320,898 accounts 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. The loan book performance has greatly improved over the last 10 years to 72% in 2023 up from 57% in 2013. HELB congratulates, 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 Kenyan students.

Ladies and Gentlemen,

My Board continues to engage the Ministry of Education and the Presidential Working Party on Education Reforms to facilitate any legal framework review and policy changes required to enhance loan disbursement, loan recovery and resource mobilization. During the coming Strategic Planning period, HELB will seek to broaden resource mobilization strategies so as to progressively increase the ratio of non-exchequer funding from the current 30% to optimum levels.   This, I believe, will enable us to finance deserving loan applicants with adequate amount to cater for the rising cost of living and increasing college fees.

In our endeavor to enhance stakeholder engagement, the HELB Universities Consultative Forum is held every two years to engage with the University fraternity on ways to improve on citizen service delivery. This year, we hold this Forum at the backdrop of the education sector reforms and funding constraints and therefore, the theme: “Sustaining Quality University Education Amidst Sector Reforms and Funding Constraints.” This is a reminder that we have no option but to adapt new strategies for resource mobilization to effectively execute our mandate. I therefore, call upon the University fraternity to walk with us on this journey of working towards alternative funding initiatives to Kenyans enrolled in institutions of higher learning, and churning out graduates who have the capacity to be innovative and resilient in the prevailing challenging environment.

Ladies and Gentlemen,

According to the latest National Government’s Plan, “Education is the ultimate means of ensuring an equitable society. Equitable education ensures that every child has a chance to fulfill their potential and rise to the highest level of accomplishment, irrespective of their social background”. We at HELB have adopted this as our driving force as we continue to empower dreams of Kenyans by facilitating their education through higher education financing. This is why we are getting obsessed with our customer experience proposition as we strive to ensure the borrowing customers get a delightful experience. Conversely, they will be expected to in-turn repay the loan after completion of their studies in order to create a revolving fund for future generations. Our prayer to the comrades therefore, is that the impactful experience we continue to give them as they benefit from the loan will be the same experience they will give other needy Kenyans by repaying the HELB loan in time. This will assist us to create a National Higher Education Revolving fund for the current and future generations.

Ladies and Gentlemen,

Over the years, our customer base has continuously grown to over 1.33M while the balance sheet has increased from Kshs 30B in 2012 to Kshs 116B in 2023. HELB therefore, is fast approaching a tier two financial institution. Moreover, our effort to compliment Exchequer and loan recoveries as the key sources of funds is vigorously expanding to external resource mobilization from Multilateral development partners, donors, devolved funds, corporates, individuals, Ministry/Departments/Agencies, Counties, and training institutions. PS, as we embark on the new strategic planning period, HELB will deliberately institutionalize External Resource mobilization to progressively supplement Exchequer funding even as the demand for our products and services continue to cause pressure on the current fund base. My Board has undertaken to lead from the front in regard to resource mobilization including debt recovery. We are actively exploring external resource mobilization instruments like Asset Backed Securitization [ABS] to progressively bridge the funding gap and establish a sustainable financing model. We seek the support of the Government in rolling out this critical initiative and providing HELB with sovereign guarantee for the Bond. Further, we request the Government to consider donations/contributions channeled to HELB be tax allowable; lobby parliament to pass legislation to make HELB central distribution point for students financing for National Government Constituency Development Fund [NGCDF] and County Bursaries; pass a Higher Education Levy or consider HELB for the Training Levy paid by companies, and to review the HELB Act to effectively support Resource Mobilization.

Ladies and Gentlemen,

My Board continues to appreciate that despite the competing Government priorities and budget limitations, the Government is committed to ensuring that the youth access university education.  This is demonstrated by the allocation made to HELB year on year. This notwithstanding, in the last three financial years, HELB has cumulatively lost Kshs. 6.15B to budget cuts coupled with adverse effects of Covid-19 that reduced the amount of loan recoveries by Kshs. 1.1B. In FY 2019/2020 and FY20 20/2021, the HELB budget was cut by Kshs. 2.85B and Kshs. 2.2B respectively. This negatively affected 142,361 students [at an of average loan of Kshs. 43,200 per year] who had started their education journey through HELB funding but are now forced to drop out of school due to lack of funding. PS, in the coming FY 2023/2024, we requested for budget allocation of 25B based on the current demand but we were allocated 17B, hence a deficit of 8B.

While my Board has embarked on alternative sources of funding, I wish to make a passionate appeal to the government to consider HELB for additional funding to address this growing deficit of over 8B. We request for ring fencing of HELB budgetary allocations through you as the Accounting Officer of the State Department of University Education. Further, I seek your intervention for Exchequer releases to HELB be made in full, in good time [ half yearly instead of quarterly] and in line with the calendar of Higher Learning Institutions. This will enable us to fund the students on time and avert scenarios of deferment and other inconveniences due to delayed Exchequer releases.

As you are aware PS, HELB Act continues to face legislative onslaught that weaken its capacity to recover loans from past loanees. The onslaught rage from capping of interest rates, prolonging the commencement of charging interest rates and grace period for the loans. We request that MoE continues to engage Parliament for them to understand HELB’s intention and approach in strengthening the mechanism for establishing a Revolving Fund for the benefit of our future generations.

Ladies and Gentlemen,

If you look at the numbers HELB has achieved particularly the growth in total assets from Kshs.30B to the current almost Kshs.147B in a span of 10 years means a lot of prudent management of resources has been done and continues to be done. There is therefore, the need to efficiently manage the state resources for the benefit of the Kenyan youth who requires funding in future. Universities must therefore, be keen on supporting HELB in ensuring their students have a seamless experience with regards to HELB Loans.

As I close, I wish you all fruitful deliberations and now take this opportunity to invite the Principal Secretary State Department for University Education and Research, Dr. Beatrice Muganda Inyangala, to make her remarks and officially open this Forum.

God Bless Kenya, God Bless HELB.