HELB turmoil deepens as Chairperson Ekwee Ethuro, CEO Geoffrey Monari clash over Sh12.9 billion shortfall

A row has erupted within the Higher Education Loans Board (HELB) after its Board Chairperson, Ekwee Ethuro, and Chief Executive Officer, Geoffrey Monari, made sharply opposing statements over the agency’s financial condition, laying bare the confusion surrounding student funding at a time of growing need.

In an interview on Thursday at Spice FM, Ethuro claimed HELB is financially healthy, dismissing reports of a funding crisis.

“HELB is not broke. It’s just like any other entity,” he said. Ethuro stated that HELB received Sh34.6 billion last year and has been allocated Sh41 billion this year, insisting the government has remained supportive despite growing demand. “Of course, demand is rising, but the government has been responsive,” he said.

But in a separate appearance before Members of Parliament (MPs), Monari painted a completely different picture. He revealed that HELB is facing a Sh12.9 billion shortfall that will prevent the board from issuing loans to 100,000 new students in the current year.

“We needed Sh48 billion in the last financial year but received only Sh26 billion. Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough,” he said.

Monari further disclosed that due to the shortfall, thousands of students missed out on tuition payments, with the board only able to provide upkeep support in some cases.

“We paid upkeep for some, but not tuition. Second semester is worse, we haven’t paid tuition at all,” he said.

While the CEO sounded the alarm on the growing strain facing students and institutions, Ethuro downplayed the situation, saying such gaps are part of normal government budgeting cycles.

“This is how government works: you get an initial budget, and later you appeal for more. We still have time before the academic year starts,” he said.

Ethuro also corrected earlier reports on the budget gap, confirming the deficit stands at Sh12.9 billion and not Sh11 billion as previously indicated.

On the issue of loan recovery, the two officials also gave contrasting views. Ethuro praised the repayment rate, saying most former beneficiaries are committed to clearing their balances.

“Many are willing to pay. Some walk in, ask how much they owe, and clear it. The challenges of recovery, we operate at almost 74 per cent performance. That is a good recovery percentage,” he said.

However, Monari criticised loan defaulters, saying HELB is now working with other government agencies to trace them.

“We’re working with the Kenya Revenue Authority (KRA) and National Transport and Safety Authority (NTSA). Some have bought cars but won’t repay their HELB loans; that has to stop,” he said.

Ethuro further addressed the ongoing complaints over the new university funding model, saying all applicants are currently considered, but the formula will be reviewed.

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• CEO Geoffrey Monari clash over Sh12.9 billion shortfall

“Everyone who applies, we allocate. Given the concerns, Kenya is being revised. This new academic year, it will still be the same formula, but parameters must change, so that we capture all the concerns that have been raised,” he said.

The public disagreement between the board’s top leadership has now sparked fears over coordination within the agency and added to the uncertainty facing students relying on HELB to continue with their education.