KCB plans to partner with Helb to fund varsity students
Robert Masese, secondary and tertiary education director at the Ministry of Education and KCB Foundation chair Catherine Kola (left) during the launch of the KCB Foundation mentorship programme at Starehe Boys Centre on August 15, 2013. Photo/PHOEBE OKALL
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The deal eliminates the need for students to apply with Helb in order to access education loans as currently is the case.
Kenya Commercial Bank plans to fund higher education for bright but needy students in a scholarship program to begin next year.
The lender is set to partner with the Higher Education Loans Board (Helb) in further financing of students who complete secondary school after having benefitted from the KCB Foundation scholarship program.
The current scholarship only funds high school students. It targets poor pupils with top grades in the Kenya Certificate of Primary Education (KCPE) across the country.
“The deal with Helb will be in the next two months,” Catherine Kola, the chairperson for the KCB Foundation said Thursday at the launch of a students’ mentorship program at Starehe Boys Centre, Nairobi.
The deal eliminates the need for students to apply with Helb in order to access education loans as currently is the case.
This will spare the beneficiaries trouble of filing individual details with the student financier which at times can drag for days. The lender says it has information of the students cutting the need for vetting by Helb in applying for loans.
It also means students will get timely allocation of funds shielding them from occasional delays experienced in the past when Helb’s coffers run dry.
Recently, new students admitted at the University of Nairobi went for days before they could access funds reportedly because the Treasury had not released the money.
KCB, however, said discussions are still in progress to determine whether it would be a revolving fund attached with interest.
“Talks are still going on,” Ms Kola said.
At present the student financier charges four per cent interest for mature loans.
The KCB Foundation has spent Sh40 million to finance 370 students across the country since its launch in 2007.
The lender has funded 200 students this year alone.
Equity Bank has a similar scholarship program dubbed “Wings to Fly” that has also sponsored needy students from different parts of the country.
Helb has since intensified its partnerships drive with institutions toward setting up restricted revolving funds that target students in certain sectors.
The education financier has already established a fund for nursing and sports with the latter targeting students from the University of Nairobi and Kenyatta University in nurturing talent in sports.
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