CHALLENGES OF HIGHER EDUCATION FINANCING IN KENYA: A CASE OF HIGHER EDUCATION LOANS BOARD

Teresia Njoki Wanjohi

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Dr. Allan Kihara

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

CITATION: Wanjohi, T., N., & Kihara, A. (2017) Challenges of Higher Education Financing In Kenya: A Case of Higher Education Loans Board. International Journal of Economics and Finance. Vol. 6(5) pp 1-19

ABSTRACT

A good higher education system is a driver for social economic development of an economy. The financing of higher education throughout the world has seen dramatic changes in the last decades of the 20^th and the first decade of the 21^stCentury.Kenya began its current Higher Education Loan Scheme under a quasi-public Higher Education Board in 1995 whereby loan amounts are means-tested with an annual interest of 4 percent. The general objective of this study aimed at investigating the challenges of higher education financing at the Higher education Loans Board, HELB. The specific objectives included; To analyse the influence of ICT challenges on higher education financing in Kenya; To assess the influence of administrative challenges on higher education financing in Kenya; To establish how credit risk affectshigher education financing in Kenya; and to find out the influence of funding strategies on higher education financing in Kenya.The study used a mixed design approach including the following; explanatory, qualitative and quantitative. In literature, the study reviewed the theories on which the study is anchored, conceptual framework, empirical review and critiqued the literature so as to establish the research gap. The study population consisted of all current HELB staff whose currently stand at 133 target population. The study is a census hence population size and sample size was 133 staff members at HELB. This study utilized a questionnaire to collect primary data. The study used inferential statistics that involved multiple regression model to establish the relationship between the variables. The study established that ICT challenges, Credit risk challenges, administrative challenges and funding strategies affect higher education financing in Kenya.

Key words: ICT challenges, Administrative challenges, Credit risk, Funding strategies, HELB.