By Rawlings Otieno
NAIROBI, KENYA: Higher Education Loans Board (HELB) has introduced a card system to curb money wastage among students in higher institutions of learning.
Through the new system, a student will be able to swipe a card to pay tuition fees, accommodation and meals.
The new card system is aimed at helping students avoid temptations of using money meant for tuition on pleasure, drinking and other acts such as prostitution.
HELB Chief Executive Officer Charles Ringera said that the University students would be given a swipe card that contains features and different segments to pay their tuition fees, accommodation and meals.
“We are introducing a swipe card to University students that will reduce wastage of money on pleasure, money that is meant for tuition fees. The card has unique features that once you swipe for tuition fees will only deduct the amount that particular amount,” said Ringera.
Speaking during a breakfast meeting organized by Kenya Institute of Supplies Management (KISM) at a Nairobi hotel, Ringera put on notice loan defaulters that they are closing in on them and soon they will recover the money.
He said that the loans are meant for tuition, books and stationery, accommodation and subsistence and once given the loan; the repayment starts within 1 year after completion of studies or within such a period as the Board may decide.
But the Loans chief is tightening other rules that if recommended will require those seeking tenders to supply goods and services to produce HELB certificate as part of compliance document by Directors of bidding firms.
This he said is in line with the directive of President Uhuru Kenyatta that youths should be given first priority in awarding tenders, and it’s on this group that the HELB is targeting.
It is estimated that by next year the number of students seeking loans will reach 169, 665 for Undergraduate and 100,000 students in the Technical, Industrial, Vocational and Educational Training (TIVET) that will cost Sh 14.8 billion.
According to Ringera it is estimated that the Loans Board will loan 2.3 million students from both the Universities and TIVET at a cost of Sh 372 billion by the year 2030.
Ringera paints a grim picture citing that by 2013, there will be 17 million youths between 18 and 35 years churned out of the higher learning institutions with skills and education but with no jobs and experience.
He further projects that by 2017, the graduates will be 24 million with no formal jobs, and if the trend continues, the country will be flooded with graduates but with no jobs and skills.
But the board is keen on recovering Sh 8.3 billion from 75, 498 defaulters; money Ringera says if paid will increase the loaning percentage and will help students forming the first batch of the free primary education.
