Higher Education Hit Hard: HELB Faces Ksh3.2 Billion Cut in 2024 Finance Bill

 

The Treasury has issued a stark warning, declaring potential funding cuts to crucial sectors such as education and internships if the amended Finance Bill is approved by Parliament.

The Finance Committee clarified that the amendments were made in response to widespread protests led by Kenya's Generation Z, prompting the government to reconsider its fiscal policies.

"The National Assembly must ensure that revenue generated aligns with the approved fiscal framework and the Division of Revenue Act," a portion of the committee's statement read. It also emphasized constraints on national borrowing.

Should the revenue measures outlined in the Finance Bill 2024 not be ratified, a shortfall of approximately Ksh200 billion is anticipated.

To offset this deficit, significant reductions are proposed across various areas. These include cuts to vocational training centers, university funding, and stipends for senior citizens, along with impacting the confirmation of medical and Junior Secondary School interns.

Key sectors like the Constituency Development Fund (CDF), school meal programs, and sports academy funding will also face reductions. Technical and Vocational Education and Training (TVET) institutions are set to lose Ksh800 million designated for ongoing projects.

In the realm of higher education, the Higher Education Loans Board (HELB) will see a reduction of Ksh3.2 billion. The Treasury has additionally earmarked Ksh2 billion less for Differentiated Unit Cost and slashed Ksh3 billion from infrastructure projects within the state department.

The most profound impact is anticipated in the education sector, with Ksh3.4 billion slashed from the State Department for Basic Education. These funds were designated for school meal programs and infrastructure improvements in academic institutions.

Furthermore, Ksh5.5 billion in cuts will affect cash transfers for over 800,000 senior citizens. The Treasury has proposed Ksh3.7 billion less for the confirmation of medical interns and an additional Ksh18.9 billion reduction for Junior Secondary School interns under the Teachers Service Commission (TSC).

Additionally, Ksh1 billion allocated for the Public Service Internship Program is set to be withdrawn by the Treasury, while a substantial Ksh15 billion cut is proposed for the National Government CDF.

These budgetary adjustments come despite previous strikes that had disrupted sectors such as education and health. The Treasury's decisions aim to mitigate financial challenges but may exacerbate concerns regarding public service delivery and social welfare.