MPs push for urgent action to save HELB and JKF from financial collapse

Members of Parliament have raised the alarm over the financial crisis facing the Higher Education Loans Board and the Jomo Kenyatta Foundation, warning that failure to act could undermine access to education for thousands of students.

In a meeting chaired by Sotik MP Francis Sigei, the National Assembly’s Public Investments Committee on Governance and Education engaged officials from the two institutions, who painted a grim picture of growing debts and dwindling resources.

The committee demanded urgent solutions, including the involvement of the Education Cabinet Secretary, to rescue the troubled entities.

HELB Chief Executive Officer Geoffrey Monari told the MPs that the loans board is intensifying its recovery strategy to tackle a growing number of defaulters, especially graduates who are employed but not repaying their loans.

"This is not just about finance. It’s about fostering a sense of responsibility and patriotism among those who have benefited from the fund. Compliance ensures we can support future generations from needy backgrounds," Monari said.

The committee was told that HELB’s revolving fund is in jeopardy as loan recovery remains sluggish, threatening its ability to support new students.

Members of the committee urged the board to explore broader outreach strategies, including running public awareness campaigns, showcasing real-life success stories, and sourcing funds beyond government allocations.

Meanwhile, the Jomo Kenyatta Foundation is also in a dire situation. Managing Director David Mwaniki reported a net loss of Sh286.6 million and total accumulated losses of over Sh592 million.

He attributed the financial woes to changes in government policy on book procurement, which disrupted the Foundation’s core business and weakened its cash flow.

Mwaniki said JKF now operates with negative working capital and is unable to meet its financial obligations.

The Foundation has since written to the Ministry of Education requesting emergency support to pay urgent debts, as documented in their official letter Ref: MOE.CONF/G11/2/2/Vol.III (34).

There may be a glimmer of hope for JKF, however.

The Presidential Working Party on education reforms has proposed that the Foundation be officially mandated to offer last-resort scholarships on behalf of the government.

If adopted, this move would allow the Foundation to receive state funding and possibly regain its footing.

The committee members were unanimous in their call to protect both institutions, describing their roles in Kenya’s education system as essential.

"Education is the backbone of our nation’s future," said Hon. Sigei. "We must not allow these institutions to collapse. Their survival is a matter of national interest."

The committee resolved to summon the Education Cabinet Secretary to outline the government’s plan to address the financial troubles at HELB and JKF.