SPEECH BY THE PRINCIPAL SECRETARY STATE DEPARTMENT FOR TECHNICALAND VOCATIONAL EDUCATION AND TRAINING, DR. ESTHER THAARA MUORIA DURING THE 2024 HELB/TVET CONSULTATIVE FORUM AT LAKE NAIVASHA RESORT

SPEECH BY THE PRINCIPAL SECRETARY STATE DEPARTMENT FOR TECHNICALAND VOCATIONAL EDUCATION AND TRAINING, DR. ESTHER THAARA MUORIA DURING THE 2024 HELB/TVET CONSULTATIVE FORUM AT LAKE NAIVASHA RESORT

QUICK LINKS

Chairman, HELB Board of Directors Board of Directors Present, CEO, HELB TVET Administrators & Student Leaders HELB Management and Staff, Invited Guests, Ladies and Gentlemen, Good Morning. It is my pleasure to join you here today to participate in this very important Stakeholder Engagement Forum - The HELB 2024 TVET Consultative Forum themed; Leaving No …

Chairman, HELB Board of Directors

Board of Directors Present,

CEO, HELB

TVET Administrators & Student Leaders

HELB Management and Staff,

Invited Guests,

Ladies and Gentlemen,

Good Morning.

It is my pleasure to join you here today to participate in this very important Stakeholder Engagement Forum – The HELB 2024 TVET Consultative Forum themed; Leaving No Student Behind: Aligning TVET Funding amidst education sector reforms for sustainability. As we navigate through a changing economic landscape, it is imperative that we recognize the importance of investing in TVET programs to support economic growth and ensure a sustainable future.

It is crucial to acknowledge that TVET programs are an integral part of the education sector, providing a pathway for individuals to acquire technical skills and knowledge that are in high demand in the job market. However, funding disparities between TVET and traditional academic education financing streams have been a persistent challenge, making it imperative to realign our financial priorities and ensure that TVET trainees have access to the resources they need to succeed.

Ladies and Gentlemen,

Capitation grant in TVET was introduced in 2018/2019 FY through a Presidential directive as a strategy for increasing access and popularize TVET. Through the directive, the annual tuition fee for TVET was fixed at KShs.56,420 with each trainee receiving a capitation of KShs.30,000 per year of training. The balance of KSh.26,420 was to be raised by trainees through Loans from Higher Education Loans Board [HELB], parent/guardian or other alternative sources.

The total cost of training is estimated at Kshs. 85,020 per trainee per year. This cuts across the various levels of training from craft certificate to diploma. Since TVET institutions have moved to competency-based education and training, emphasis is on acquisition of skills, the cost is likely to remain the same. The only difference will be the duration of the course. Hence diploma trainees are likely to pay more than those undertaking craft certificate courses. The total cost comprises KShs. 71,420 tuition and examination fees and KShs. 13,600 up-keep for the trainees. However, with the discount by the TVET institutions, the cost of tuition and examination reduces to KShs. 67,189 per trainee per year.

The annual capitation allocation to the State Department of TVET however has remained fixed at KShs. 5.2B annually against the increasing enrollment of trainees from 60,667 in 2018/2019 to the current enrollment of 324,399 in 2023/2024. Since 2018/2019 to date, there is a capitation deficit of KShs.15,776,351,975. This deficit is affecting the management of these institutions due to budgetary constraints resulting to slow growth in some institutions. Since capitation started in the last five years, KShs. 15,475,180,525 has been disbursed and a total of 332,485 trainees have been able to benefit.

Ladies and Gentlemen,

Since lack of enough financing for students in TVET under capitation model was identified as a major concern impacting students access to higher education, a swift and targeted intervention was required to address this issue.

This led to the introduction of Higher Education New Funding Model [NFM] by His Excellency the President, William Ruto, on May 3rd, 2023. This model aims to make higher education affordable and accessible to all needy trainees regardless of their social economic background. It delinks placement and funding of trainees and is based on the trainee’s level of need. The trainees are classified in five bands based on individual level of need.

Since the onset of the New Funding Model in August 2023, a total of 128,088 trainees have applied for both TVET loan and scholarship. A total of   44,481 TVET trainees have already benefitted from KShs. 1.6B that has been disbursed. Applications continue to be processed and more trainees will benefit. The Government is committed to ensuring that No Student is Left Behind. In the financial year 2023/2024, the projected applicants are 166,924 trainees. From this projection, KShs. 6.2 billion is required for scholarships and loans.

Ladies and Gentlemen,

There is a unique nature of TVET trainees-walk-ins to TVETs. 80% of enrollment in TVET institutions are the walk-ins. They are not initially placed by KUCCPS.  This has caused  a challenge. There is a slow process of validation through KUCCPS, and this makes the trainees unable to access loans and scholarships in good time. I therefore urge KUCCPS to speed up the process of validation so that TVET trainees benefit from the scholarship and HELB loans which the Government is offering.

Low awareness /access on the TVET funding model in remote locations like in ASAL areas remains one of the key challenges. There is a dire need to upscale publicity on the New Funding Model as the government has made provision for adequate funding for higher education.

Ladies and Gentlemen,

Referring to the recommendations made by the Presidential Working Party on Education Reforms (PWPER), we must recognize the potential of TVET programs to drive economic sustainability by providing the youth with practical, industry-relevant skills, to enhance their employability and contribute to the growth of various sectors. As we reform our education sector, it is essential that we invest in TVET not only to promote economic development but also to foster sustainability.

Moreover, aligning TVET trainees funding will help to address issues of social equity and inclusivity. Historically, TVET programs have been viewed as a second-choice option in Kenya often due to financial constraints or societal biases. By allocating adequate resources to TVET, we can eradicate the notion that university academic pursuit creates a more equitable education system that caters to diverse talents and aspirations, but rather TVET training too. Adequate funding of TVET programs will enable the youth to pursue their passions while contributing to economic growth.

Furthermore, as we implement education sector reforms, it is crucial to ensure that TVET trainees have access to financial assistance programs. Scholarships, grants, and loans specifically designed for TVET trainees can help to reduce financial barriers and ensure that no aspiring Kenyan youth is left behind due to economic constraints. By establishing strong partnerships with public and private stakeholders, we can create sustainable funding model that provide the necessary financial support for TVET trainees.

Ladies and Gentlemen,

To date, HELB has disbursed TVET loans to 398,063 Kenyans and at a total cost of KShs.46.81B.  A total of 117,147 loanees/loan accounts holding KShs.3.59B have not matured for repayment, while 280,916 loan accounts worth KShs.43.22B have matured for recovery. Of the mature TVET loans, 39,525 loan accounts worth KShs.3.95B are repaying their loans while 121,097 TVET loanees holding KShs.20.42B are in default. Another 120,294 TVET loanees holding KShs.18.84B have completed repayment of their loans. The TVET loan book performance currently stands at 25% translating to a portfolio at risk (PAR) of 75%.

Aligning TVET trainees funding amidst ongoing education sector reforms is vital for sustainability and economic growth. By investing in TVET, we can provide the youth with practical skills and knowledge required by the job market, fostering economic development and reducing unemployment rate in Kenya. This in turn will make loanees repay their loans faster and with ease thereby creating a revolving fund for sustainability.

Moreover, an equitable and inclusive education system will empower the youth from all backgrounds to contribute to the sustainable growth of Kenya.

Ladies and Gentlemen,

As I conclude, to address the specific challenges faced by TVET students, administrators, State Department for TVET and HELB, and to ultimately foster a sustainable and inclusive TVET Ecosystem, I want to call upon:

  1. TVET students to immediately take advantage of scholarship and loan application deadline extension to apply for funding through the higher education financing portal [www.hef.co.ke].
  2. TVET administrators to direct all the needy trainees who have not applied for funding to apply before being allowed to sit for their upcoming examination.
  • TVET Institutions to strengthen strategic collaborations with industry stakeholders and HELB to align funding with the evolving skill sets for the job market.
  1. TVET institutions to supplement HELB’s Financial Literacy Program during loan application process by integrating financial literacy programs withing TVET curricula to empower students with the skills needed to manage their finances responsibly to reduce the risk of loan default.
  2. HELB to explore Technology-Driven Debt Management Solutions that enhance the efficiency of debt management processes, minimize administrative burdens, and improve communication channels with TVET loan beneficiaries.
  3. HELB to establish a research and evaluation frameworks to continuously assess the impact of TVET loans, gather feedback from beneficiaries, and identify areas for continuous improvement in debt management strategies.
  • HELB to advocate for legal framework enhancements that governs TVET student loans, ensuring that HELB has the necessary tools to enforce repayments while prioritizing fairness and compliance with legal standards.

Thank you and God bless HELB, God bless Kenya!