Unshackling the Chains of HELB: KenGen Education Scholarships Stipend.
Recently in the US, the Morehouse College senior class of 2019 had their college debt cleared by a fellow student upon graduation. One of his classmates had a whooping debt of close to $35,000, an astronomical burden for someone yet to be employed.
The exact amount to be covered by billionaire investor Robert F. Smith for the 396 students in the historically black college is still being calculated (by time of going to print), but the sum will likely be in the tens of millions of dollars.
And with global students debts running into trillion of dollars according to an article in Forbes magazine, the choices about what graduates can do after college or university are limited. Smith’s gift gave them the liberty to follow their dreams and their passions.
Back at home the situation has reached alarming levels. The Higher Education Loans Board recently reported 440,000 higher education loan defaulters with debts amounting to Sh52.1 billion on the run.
Another 390,000 graduates are holding Sh37.2 billion in loans that have not yet matured, with 150,000 graduates repaying Sh23.6 billion in loans, the board says.
Currently, 45 per cent of students in higher learning institutions are covered by HELB. Smith’s donation could be more than enough to clear half of what the beneficiaries owe the board.
READ: One-off KenGen Funding Delivers Top Grades
Unemployment levels among youth joining the job market in early 2019 stand at 75 per cent, demonstrating that university graduates do not have the ability to repay what they owe.
But for University students under the KenGen Education Scholarships things are different.
In 2015, KenGen PLC approved the disbursement of accommodation and food allowance for the all university students under the KenGen Education Scholarships, thus cushioning them against an insecure future of debt.
The decision was made after the government upgraded the status of 15 constituent colleges to full universities, leading to an accommodation crisis, as the infrastructures could not accommodate all the students.
Universities were stretched to their limits, and the extra students were forced to look for cheap and affordable accommodation outside the institutions, usually at sub standard and dangerous neighborhoods.
A lot of negativity has been reported in such communes, with students cohabiting, leading to early pregnancies, high drop out rates, drug abuse and such other vices all attributed to lack of financial management knowledge.
The total sum per student is Ksh. 50,000 per year, with Ksh. 25,000 transferred to their accounts at the beginning of each semester. The funds enable all the students enjoy the full scholarship since most of them come from humble backgrounds and are in need.
For some students, the stipend has also been a source of furthering their education by enrolling in short courses. Others have saved and invested the allowance for laptops, printers, and photocopiers to generate separate income for their subsistence.
With over 300 students graduating since the Education Scholarship stipend was implemented, KenGen continues to demonstrate its commitment to improving the quality of life of university students under its sponsorship.
The allowances have enabled the students excel in their studies, and be comfortable so as to attain improved academic outcomes as envisaged in the awarding of the scholarships.
The stipend has also been a blessing to the beneficiaries as a solution to financial growth, educational advancement, and a guaranteed future free of debt.
Through the education scholarships, KenGen emphasises on creating a pool of trained, competent, and patriotic individuals that contribute towards building a vibrant economy and transforming the country into a middle-income economy. The company has so far spent over Kshs. 10 million in supporting students from marginalized areas across the country.
For top performers in selected courses, KenGen offers them an opportunity to join the workforce in their professional capacities.
ALSO READ: Diligence Pays Off for KenGen Education Scholarship Alumnus
Robert F. Smith, the son of educators, started his career as a chemical engineer for Goodyear and Kraft. He expects the recipients of his generous donation to “pay it forward” and hopes that “every class has the same opportunity going forward.”
The entrepreneur is the founder of investment firm Vista Equity Partners, a private equity firm that invests in software, data, and technology-driven companies.
He is worth about $5 billion, according to Forbes, which reports he is the richest black person in America.
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–Ernest Nyamasyo, Communication Officer
