Ruto Gives Way Forward on University Funding Model & Reduction of HELB Interest
President William Ruto is set to form a broad-based committee that will address outstanding issues on the new university funding model adopted by his government.
In an engagement on Saturday, the Head of State revealed that the committee would include university students and stakeholders to chart a way forward to find a long-lasting solution.
Among the issues that will be discussed include; the mean testing model used to determine the amount of scholarship awarded to students. Reduction of HELB interest rates will also be considered.
Below is a detailed breakdown of Ruto’s take on issues raised by students and parents:
Inequality in categorizing students
Students: During the engagement, it was noted that some underprivileged students were getting little funding owing to the categorization done by the government.
Ruto’s Response: The president noted that the new model was introduced to benefit many Kenyans from poor family backgrounds as they would get a higher allocation for scholarships at 80 percent.
However, he acknowledged that there were outstanding issues with the model hence the need to relook at the mean testing formula applied.
“We need to improve the mean testing model so that a student who should get an 80 percent scholarship is not placed in the 50 percent category.
“I am ready to work with the students to get the model right,” he stated.
Proposal to Reduce HELB Interest Rate
Students: University students proposed to have the current HELB interest rate of 4 percent reduced to 2 percent.
Ruto’s Take: The Head of State expressed that he was willing to engage university students on the new proposal.
However, he noted that the new interest rate needed to be informed by science. Therefore, he challenged university students, especially those undertaking Actuarial Science to propose a formula for charging HELB interest rates.
Review of HELB Repayment grace period
Students: The proposal fronted by the students was for beneficiaries to begin repaying the loans after securing employment or some years after beginning employment.
In response, Ruto acknowledged that it would be prudent to give beneficiaries time to get employment before the repayment is initiated.
He, therefore, noted that he will engage the relevant agencies and the students to come up with a standard grace period that will be beneficial for the students.
Committee
The broad-based committee will be set up in the coming week and will also include vice-chancellors and Ministry of Education officials.
Discussions will be undertaken within a month. The government will implement the recommendations as students report to various institutions in September.
Ruto Gives Way Forward on University Funding Model & Reduction of HELB Interest
