An assessment of higher education loans board in financing university education in Kenya; a case of Moi University

Abstract

The demand for University Education in Kenya has been on the rise but government funding has not been proportional to this rise; hence the huge number of students deferring their studies. This study was therefore conceived and undertaken to assess the capacity of Higher Education Loans Board (HELB) in financing Higher Education in Kenya. Understanding the extent to which HELB has performed in financing Higher Education in Kenya was important so as to recommend on how service delivery can be enhanced in the corporation. To achieve that, the study had the following objectives: to assess the operations of HELB as regards financing University Education; to assess the sufficiency of the loans awarded in relation to academic needs of students, and finally; to examine the students perception on loan application and disbursement. The study applied Human Capital Theory which explores such aspects as completion of academic programmes as an investment in Human Capital that increases the productivity of a nation. The study employed qualitative and quantitative approaches in data collection and both descriptive and inferential statistics were used to analyze data. The study targeted 2010-2014 student cohorts. The sample size was arrived at through statistical table and purposive sampling technique. The methods of data collection were: interview, questionnaire, reviewing literature around financing Higher Education, and focused group discussion. The main primary sources of data were: HELB offices in Nairobi, Dean of Students Office, Student Finance Moi University, Admissions Office Moi University and sampled students from six schools in Moi University. Secondary data was drawn from available literature on HELB and its activities. Quantitative data was analyzed using SPSS computer software whereas qualitative data was analyzed using the content analysis approach. Findings on operations of HELB show that HELB has placed many hurdles in the application process, there are many requirements in the application process and getting clearances from various government agencies. Findings on sufficiency were that the loan awarded by HELB to a larger extend is insufficient; HELB is not the only source of funding for students but there are other supplementary sources like NGOs, CDF, County & Ward Bursaries, and charity organizations. Findings on perception revealed that the percentage of those with negative perception about HELB was higher implying that there was a lot of disquiet among the beneficiaries of HELB. Data was presented using: pie charts, tables, bar graphs, and descriptions of various phenomena. The conclusions of the study were: HELB can easily be crippled in case the government decides to slash off part of its budgetary allocations or if there are policy changes as was the case with cost-sharing and double intake. This hinders HELB from planning early because of the unpredictable behavior of the National Treasury. There are loopholes in verifying deserving cases for loan allocation by HELB and this can be exploited by fraudsters for personal gain. There’s also a systemic increase in deferments as students’ progress to third and fourth years of their study. The study recommends the need for a policy framework on how the various stakeholders in the education sector can interface to smoothen the process.