Kenya Higher Education Loans Board Scrapped: Tertiary Education Funding Authority Bill

• The Higher Education Loans Board (HELB) is set to be replaced by the Tertiary Education Funding Authority if a proposed Bill is passed into law.
• The new authority would mobilize funds through various channels, including allocations by the National Assembly and investment proceeds.
• It would also administer scholarships, maintain tertiary education funding data, and recover loans from beneficiaries.
• The authority's Board would comprise a chairperson appointed by the President and other members drawn from various sectors.

The proposed authority would have the power to mobilize funds for lending to students and trainees in tertiary institutions through the Tertiary Education Fund.

The Higher Education Loans Board (HELB) will soon be replaced by a new entity, the Tertiary Education Funding Authority, if a proposed Bill is passed into law. This change is part of a broader effort to revamp tertiary education funding in Kenya. The new authority would have the power to mobilize funds for lending to students and trainees in tertiary institutions through the Tertiary Education Fund. The fund's finances would be sourced from various channels, including allocations by the National Assembly, investment proceeds, and loan repayments.

The proposed authority would also administer scholarships, maintain tertiary education funding data, and recover loans from beneficiaries. Furthermore, it would be empowered to tap private capital and other sources of education financing, including domestic pension funds, collective investment schemes, sovereign wealth funds, and climate finance. To ensure the authority's effectiveness, its Board would comprise a chairperson appointed by the President, along with other members drawn from various sectors. The chairperson and board members would serve three-year terms, subject to satisfactory performance.

The proposed changes have significant implications for student loan financing and repayment obligations, as well as scholarship administration and tertiary education funding data management. Lawyers and compliance officers should be aware of these developments, as they may impact their clients' or organizations' involvement in education financing initiatives. The new authority's ability to tap private capital and other sources of education financing could also have far-reaching consequences for the sector.

Lawyers and compliance officers should watch for the potential impact on student loan financing and repayment obligations, as well as any changes to scholarship administration and tertiary education funding data management.

Source: Original reporting via Capital FM