In the just released 2015/2016 budget allocation, Higher Education Loans Boards (HELB) was only allocated ksh 7.5 billion. However, HELB CEO Mr. Charles Ringera clarified that they only received ksh. 4.9 billion from the amount allocated since they had raised ksh. 2.5 billion amount through loan recovery.
Ringera further indicated that the allocation of ksh. 4.9 billion was way below their budget which they had set expecting to receive atleast ksh. 9 billion. This has therefore forced the board to take actions that will enable it run its services
The board has decided to gradually suspend issuing attachment loans. Gradually here means that the move will be effected slowly. Daily Nation reports also indicate that, the education ministry has slashed the attachment loans from ksh. 12,000 to ksh. 6,000. The 12,000 used to be allocated to students doing practical courses.
Lots of questions have been raised as to why the ministry of finance decided to to allocate Ksh 25 billion to NYS and deny to allocate ksh. 9 billion to HELB.
You can read the 2015/2016 budget allocation divisions here
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