President William Ruto is set to form a broad-based committee to handle outstanding issues over the new funding model his government has adopted for universities, as this will ensure fairness and effectiveness in funding students at the institution.
It was declared by the President on Saturday that the committee would feature university students and major stakeholders. Their mandate was to seek lasting solutions with specific focus on the mean testing model that is used in determining scholarship quantums and the reduction of HELB interest rates.
Key Issues and Responses
Inequality in Student Categorization
Students: The system the government uses for categorizing makes most underprivileged students end up receiving minimal funding.
Ruto’s Response: The President highlighted the model’s objective, which is to benefit students from humble backgrounds with up to 80% scholarship. However, he acknowledged flaws in the mean testing formula and expressed willingness to refine it to ensure scholarships were fairly distributed.
“We need to improve the mean testing model so that a student who should get an 80 per cent scholarship is not placed in the 50 per cent category. I am ready to work with the students to get the model right,” Ruto stated.
Proposal to Reduce HELB Interest Rate
Students: University students proposed the reduction of the current 4% HELB interest rate to 2%.
Ruto’s Take: The President is willing to consider any proposal brought forward about this but insists on an interest rate that must be scientifically backed. He challenged actuarial science students to come up with a fair formula on how much interest HELB should charge.
Review of HELB Repayment Grace Period
Students: Students proposed that loan repayments should start after getting jobs or after some few work years.
Ruto’s Response: The President agreed that there should be a period beneficiaries can use to find employment before repayment. He plans to work in close cooperation with the relevant agencies and students in order to come up with a standard grace period.
Formation of the Committee
The committee will be formed next week, comprising of Vice Chancellors and Ministry of Education officials. The discussions are set to take place over a month, with recommendations set to be implemented as students get back to their institutions in September.