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The East African : February 17th 2014
The EastAfrican NEWS FEBRUARY 15-21,2014 9 for student loans and expansion of universities up its investments in government securities and fixed deposits — the only vehicles it has been tapping into — as well as float an education bond after conducting a feasibility study in June 2017. This would help it tap into the billions of shillings held by high “Kenya’s high inflation means an increasing demand for these loans.” Charles Ringera, chief executive of Helb net worth investors. In Uganda, fees from stu- dents are the leading source of revenue, and the government spends only 2.5 per cent of GDP on higher education, compared with an average of 4.5 per cent in the rest of the EAC states. At Makerere University, funds from private sources contributed 60 per cent to total recurrent expenditure in 2005/06, up from 28 per cent in 1996/97. By Mwaura Kimani and Christine Mungai year grace period. The government is pro- jecting a sharp rise in student numbers in the next two years, from the current 250,000 to 450,000 students in 2016. This will raise the enrol- ment rate in universities from 3.5 to 10 per cent during this period. The rapid increase in en- rolment and faltering government capitation to public universities and Helb is threatening the existing system of state scholarships and public student loans. “We are mapping potential donors with specific sector-support requests. We have now recruited a fund manager who will spearhead this function across the globe. We think this space is very broad,” said Mr Ringera. “There is pressure to mo- bilise all possible financing avenues to meet the demand. The trick is to ensure that through e-learning, students do not have to physically attend classes, reducing the pressure on facilities, “ said Alfred Mutema, vice chancellor of Kenya Methodist University (Kemu). “We are exploring private funds both locally and globally,” he said. Currently, it costs at least Ksh900,000 ($10,558) to finish a four-year parallel degree programme in Kenya. It costs a student less than a half this amount to undertake a similar degree under the regular programme. Proponents of the new fi- nancing model argue that the government needs to target the poorest population for state-guaranteed vouchers and loans, while promoting the development of alternative affordable loans from the commercial banking system targeting a wealthier population. The proposals are aimed at weaning the universities of their heavy reliance on shortterm borrowing, which has left them with budget gaps and ramped up the cost of higher education. “Both public and private universities are already borrowing money from commercial banks but the high interest rates and the short durations of those loans do not encourage investments in more costly and therefore less profitable — at least in the short run — programmes that nevertheless correspond to the needs of the job market. This obliges the universities to increase tuition fees that become unaffordable for the students and their family,” said a concept paper prepared by the Ministry of Education and AFD. Helb also plans to scale COURSES ISO/IEC 27001:2013 -ISMS Implementation Course ISO/IEC 27001:2013 - ISMS Internal Audit Course ISO/IEC 27001:2013 - ISMS Lead Implementation Course ISO/IEC 27001:2013 -ISMS Lead Auditor Course ISO 22301:2012 Business Continuity Implementation Course NO. OF DAYS 3 Days 2 Days 5 Days 5 Days 2 Days DATES Mar 3-5, Mar 10-12, Mar 17-19 Jun 9-11, Jun 16-18 Mar 6-7 Jun 12-13 Mar 24-28 Jun 23-27 Jun 30 - Jul 4 Mar 13-14, Mar 20-21 Jun 19-20 COST (INCLUSIVE OF VAT) KES. 139,200 USD 1,615 KES. 92,800 USD 1,070 KES. 232,000 USD 2,670 KES. 232,000 USD 2,670 KES. 92,800 USD 1,070 "l0(5 C/.24l3+.* ")1+&% L+-+3('
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