TTC student loans proposal unsustainable without dedicated sector budget, HELB warns

The Higher Education Loans Board (HELB) has raised concerns over a proposal to extend loans and scholarships to teacher training college (TTC) students, warning that, without a dedicated funding stream, the move could overstretch its already limited resources.

HELB argues that the current budget barely supports university and TVET students, and that including additional beneficiaries would require new funding mechanisms.

The warning follows the tabling of a proposal in Parliament seeking to include TTC students in the national student financing framework.

The proposal recommends creating a dedicated budget under the State Department for Basic Education—managed by HELB—to disburse loans and scholarships to TTC learners.

It also highlights the need for equitable financial support across all tertiary institutions, emphasising that TTC students deserve the same assistance as their peers in universities and technical colleges.

Intense financial pressure

HELB Chief Executive Officer Geoffrey Monari said the board is already operating under intense financial pressure due to growing demand, and including TTC students without ringfenced funding could jeopardise the support currently given to university and TVET students.

“While HELB supports the expansion of financial assistance, it must be noted that the board is already under financial pressure. Without a dedicated budget for TTCs, adding them to Helb’s obligations could worsen the strain on existing beneficiaries,” Monari said.

“To avoid this, HELB strongly recommends ringfenced funding through sector-specific budget lines (SSBLs) or sector-based revolving funds supported by parent ministries. This would ensure TTC students are supported without jeopardising current beneficiaries.”

Currently, HELB provides loans and bursaries to students enrolled in public universities and technical and vocational education and training (TVET) institutions, using funds allocated by the State Departments for Higher Education and TVET.

However, TTCs, medical colleges, and other specialised training institutions are not yet covered under this financing framework.

Monari explained that the Kenya Universities and Colleges Central Placement Service (KUCCPS) places around 10,000 students in TTCs each year, with the average annual tuition fee per student estimated at Sh72,000.

“Every year, the Kenya Universities and Colleges Central Placement Service places about 10,000 students in TTCs. With the annual tuition fee averaging Sh72,000 per student, Helb would require around Sh720 million to support one cohort a year. If all three years of study are funded concurrently, the total funding requirement would rise to more than Sh2.1 billion,” he said.

Monari warned that this figure could increase further as the government expands teacher training in line with the 100 per cent transition policy and the rising demand for educators under the competency-based education system.

“To implement the plan sustainably, there is a need for SSBLs to enable ministries to allocate funds that Helb would administer solely for TTC student loans and scholarships,” Monari said.