Helb to be replaced by the Tertiary Education Placement and Funding Board: Final CBC Task Force Report

The CBC taks force has recommended the establishment of a Tertiary Education Placement and Funding Board, for the placement of the government sponsored students to public Universities, colleges and TVET institutions, for the management of a Fund to be used for providing loans and grants to assist Kenyan students to pursue tertiary education at such institutions within and outside Kenya, recognized by the relevant government agencies, provide finance to supplement the provision of tertiary education by the government.

ESTABLISHMENT AND FUNCTIONS OF THE TERTIARY EDUCATION PLACEMENT AND FUNDING BOARD (TEPFB)

Establishment of the Board

• There is hereby established a Board to be known as the Tertiary Education Placement and Funding Board which shall be a body corporate with perpetual succession and a common
• The Board shall be capable in its corporate name of –
  • suing and being sued;
  • taking, purchasing or otherwise acquiring, holding, charging and/or disposing of movable and immovable property;
  • entering into contract;
  • borrowing and lending money;
  • doing or performing all such other things or Bills necessary for the proper performance of its functions under this Bill, and which may lawfully be done or performed by a body
• The Board is the successor to the Higher Education Loans Boards (Cap 213) now repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, No. 42 of 2012,), TVET Funding Board (under Technical and Vocational Education and Training Act No. 29 of 2013).
• Subject to this Bill, all rights, duties, obligations, assets and liabilities of the Higher Education Loans Boards (Cap 213) now repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, No. 42 of 2012,) and TVET Funding Board (under Technical and Vocational Education and Training Act No. 29 of 2013) existing at the commencement of this Bill shall be automatically and fully transferred to the Tertiary Education Funding Board and any reference to the Higher Education Loans Boards (Cap 213) now repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, No. 42 of 2012,) and TVET Funding Board (under Technical and Vocational Education and Training Act No. 29 of 2013) any contract or document executed prior to the commencement of this Bill, shall for all purposes be deemed to be a reference to the Tertiary Education Placement and Funding Board established under this

4.   Functions of the Board

• The functions of the Board shall be —
  • to manage the Fund established under clause 16 and for that purpose to –
    • advise the Cabinet Secretary on matters of education funding and related policy issues;
    • to formulate sound policies for regulating the management of the Fund;
    • to set the criteria and conditions governing the granting of loans, including the rate of interest and recovery of loans;
    • to enter into contracts with financial institutions for the purpose of loans disbursement and recovery;
    • to grant loans out of the Fund either with or without security, as the Board may deem fit, to any eligible person to enable him, or assist any student, to meet the cost of tertiary education;
    • to determine the maximum number of eligible persons or students to be granted loans in any one particular year;
    • to receive and consider all loan applications from eligible persons or students wishing to be considered for the award of tertiary loans, and to approve, withhold or reject such requests in accordance with the provisions of this Bill;
    • to establish and award bursaries and scholarships which it may consider necessary for the promotion of the objectives and functions of the Board;
    • to take out insurance cover for risky loans such as death, incapacity or inability to pay, as the Board deems fit;
      • to solicit for funds and other assistance to promote the functions of the Board;
      • to receive any gifts, donations, grants or endowments made to the Board, and to make legitimate disbursements therefrom;
      • to establish and maintain links with other persons, bodies or organizations within or outside Kenya, as the Board may consider appropriate for the furtherance of the purposes for which the Board is established;
      • to invest any surplus funds not currently required for the purpose of the Board in any investment authorized by law for the investment of trust funds with power from time to time to vary or realize those investments;
      • with the consent of the Cabinet Secretary, to set up and expend such other funds as may from time to time be required;
      • to borrow such monies from such sources and in such amounts as may be approved by the Cabinet Secretary with the concurrence of the Treasury and to secure such loans in such manner as they deem fit;
      • to take out insurance cover for risky loans such as death, incapacity or inability to pay, as the Board deems fit;
      • in consultation with the stakeholders, propose and establish for approval by the Cabinet Secretary and the Auditor-General the maximum differentiated unit cost for the programmes offered by tertiary institutions;
      • establish the minimum discipline differentiated remuneration for academic staff of tertiary institutions, which shall be fair and globally competitive, and advise the Government accordingly;
      • to place government sponsored students in public Universities, colleges and TVET institutions;
      • to perform and exercise all other functions and powers conferred on the Board by this Bill.
        

        3.   Conduct of Business and Affairs of the Board

        The conduct and regulation of business and affairs of the Board shall be as provided in the First Schedule.

        4.    Constitution of the Board

        • The Board shall consist of—
          • Chairperson appointed by the President;
          • Principal Secretary responsible for Higher Education and Research, or a representative;
          • Principal Secretary responsible for Technical and Vocational Education and Training or a representative;
          • the Principal Secretary in the Ministry responsible for finance, or a representative;
          • a representative of the Vice-Chancellors or Principals of the Public Universities;
          • a representative of the Vice-Chancellors or Principals of the Private Universities;
          • the Secretary of the Commission;
          • the chief executive of the TVETA;
          • two persons who have proven knowledge and experience in Financial matters one of whom shall represent colleges not within ministry of education and from different gender;
          • the Director General who shall be an ex officio.
        • The members of the Board referred to in paragraphs (e) (f) and (i) shall be appointed by the Cabinet Secretary for a period of five years or for the period of the

        5.   Qualification for Appointment as Member of Board

        • A person shall be qualified for appointment as a chairperson or member of the Board if the person –
          • in the case of the chairperson, holds a master’s degree from a University recognized in Kenya and has at least fifteen years’ experience in matters relating to finance management in education;
          • in case of a member of the Board referred to under clause4(1) (e), (f) and (i) holds a master’s degree from a University recognized in Kenya and has at least ten years’ experience in matters relating management;

 

) in addition to the qualifications specified under subclause (1), a member of the Board shall be a person of high moral caliber and integrity in accordance with Chapter Six of the Constitution and capable of contributing to tertiary education.

• The chairperson of the Board shall be appointed from persons who, in addition to the competencies specified in subclause (1), have ten years’ experience in leadership and management of public or private

3. Vacancy of Office

• Subject to the provisions of this Bill, the office of a member of the Board shall become vacant if the member –
  • resigns by notice in writing addressed to the Cabinet Secretary;
  • is absent from three consecutive meetings of the Board without the permission of the Chairperson, or, in the case of the Chairperson, the permission of the Cabinet Secretary;
  • is unable to perform the functions of office by reason of prolonged physical or mental incapacity;
  • is adjudged bankrupt by a court of competent jurisdiction or enters into a composition or scheme of arrangement for the benefit of creditors;
  • is guilty of gross misconduct;
  • fails to meet the requirements of Chapter Six of the Constitution; or
  • is convicted of an offence and sentenced to imprisonment for a period of six months or
• Where the office of a member of the Board under clause 4(1) (e), (f) and (i) becomes vacant, the Cabinet Secretary may, subject to the provisions of this Bill, appoint another person to fill the vacancy for the remainder of the term of such
• Notwithstanding the generality of the foregoing, any member of the Board suspected of having contravened Chapters 6 or 13 of the Constitution shall vacate office to pave way for
• Where a person who has vacated office under sub-clause (3) is not found culpable of any unlawful Bill by a competent legal authority, the person shall be reinstated to the position of a

4.   Director General

• There shall be a Director General to the Board who shall be appointed by the Board and who shall be the chief executive of the Board, and shall be responsible for the management of the day-to-day activities of the
• The Director General shall hold office for five years and shall be eligible for reappointment once subject to performance evaluated by the
• The Director General shall be the head of the Secretariat and shall be responsible to the Board in ensuring that the Secretariat satisfactorily carries out duties and performs functions assigned to it by the Board.

• The Director General shall be an ex officio member of the Board and shall have no right to vote at the meetings of the

3.      Committees of the Board

(I) The Board may set up such committees as may be appropriate to perform such functions and discharge such responsibilities as it may determine, provided that the Board shall not delegate its principal mandate to the committees.

• Each committee shall elect its own
• The Committee shall cause the minutes of all proceedings of its meetings to be recorded and kept, and shall be signed by the chairperson or the person presiding at the
• Subject to this Bill, the committees shall regulate their own

4.      Training levies

The Cabinet Secretary may make a training levy order for the purpose of giving effect to proposals submitted by the Board and approved by him, and the order may provide for the amendment of a previous training levy order

5.      Delegation of Powers

• The Board may delegate to any of its committees such of its powers and duties as it may deem
• Except with the written authority of the Board, no act of a committee shall be binding on the Board until it has been approved by the
• Any person aggrieved by a decision of a committee, may appeal to the Board within sixty days from the date of such decision and in every such appeal, the decision of the Board shall be final and not subject to a further appeal in any

6.      Deputy Director General

• The Board shall appoint one or more Deputy Director General who shall, under the general authority of the Director General, exercise such powers and perform such duties as may be assigned by the Director
• A Deputy Director General shall hold office on such terms and conditions as may be specified in the instrument of

7.      Corporation Secretary

There shall be a Corporation Secretary of the Board who shall hold office on such terms and conditions as may be specified in the instrument of appointment.

8.    Officers and Agents of the Board

(1)   The Board may employ such other officers and staff as it may deem necessary for the performance of its functions under this Bill and any person employed under this clause shall be deemed to be a public officer within the meaning of the Constitution.

• All appointments under this clause shall consider gender equity, ethnic and regional balance in accordance with the
• The Board may by a resolution either generally or in any particular case delegate to any member, officer, employee or agent of the Board the exercise of any of the powers or the performance of any of the functions or duties of the Board as authorized by this

PART III – PLACEMENT

3. (1) The functions of the Board in placement shall be to –

• co-ordinate the placement of the government sponsored students to public Universities and colleges and public TVET institutions;
• disseminate information on available programmes, their costs, and the areas of study prioritized by the Government;
• collect and retain data relating to public University and college and public TVET institutions placement;
• advise the Government on matters relating to public University and college and public TVET institutions student placement;
• develop career guidance programmes for the benefit of students; and
• perform any other function assigned to it under this
• The Board shall in the performance of these functions promote equity and access to University and college education, by among other things, developing criteria for affirmative action for the marginalized, the minorities and persons with
• The Board shall establish criteria to enable students access the courses for which they applied taking into account the students’ qualifications and listed

PART IV – ESTABLISHMENT AND ADMINISTRATION OF THE FUND

4. Establishment of the Fund

• There is hereby established a Fund to be known as the Tertiary Education Fund which shall be managed and administered by the
• The objects of the Fund shall be:
  • to provide funds to be used for providing loans and grants to assist Kenyan students to pursue tertiary education at such institutions within and outside Kenya, recognized by the relevant government
  • To provide finance to supplement the provision of tertiary education by the
• For the purpose of attaining these objects, the monies from the Fund shall be expended as follows:

(a)   to provide financial support to tertiary institutions, through the Ministry of

Education, for the development and maintenance of essential academic facilities and infrastructure in public educational institutions;

• to provide loans to students to pursue tertiary education at such institutions within and outside Kenya, recognized by the relevant government agencies;
• to provide grants to tertiary institutions:
  • to train brilliant and needy students;
  • to undertake research and other academic programmes of relevance to national development; and
• to provide monies to support such other educational activities and programmes for the promotion of tertiary education as the Cabinet Secretary in consultation with the Board may

3.      Revenue and Expenditure of the Fund

• There shall be credited to the Fund –
  • sums of money which may from time to time be voted by Parliament for that purpose;
  • sums which represent the repayment of the capital and interest of any loan granted by the Board or any other loan made prior to the enactment of this Bill by the Cabinet Secretary responsible for Education;
  • income from any investment made by the Board;
  • any sums of money borrowed by the Board with the consent of the Cabinet Secretary;
  • any gifts, donations, grants and endowments made to the
  • training levies
  • other monies or property that may in any manner become lawfully payable and vested in the Board for the
• There shall be paid out of the Fund any expenditure approved by the Board and incurred in connection with the administration of the

4.      Administration of the Fund

The Cabinet Secretary shall by Regulation prescribe the administration of the Fund in accordance with this Bill and other relevant laws.

PART V – OFFICERS OF THE BOARD

5. Officers of the Board

The Board shall employ such officers, inspectors and servants as shall be necessary for the performance of their functions under this Bill and shall pay out of the Fund to such officers and servants such salaries and allowances as the Board may from time to time determine.

21.   Inspectors of the Board

• An inspector of the Board shall be appointed for the purposes of ascertaining whether the provisions of this Bill have been complied with within any premises or place liable to inspection under this clause have power to enter such premises or place at all reasonable times and to examine every person whom he finds
• The occupier of any premises or place liable to inspection under this clause and any person who is or has been employing any loanee, and the servants and agents of such occupier or other person, and any employer shall furnish to the inspector all such information and produce for inspection all such documents as the inspector may reasonably require for the purposes of ascertaining whether loan repayments are or have been made or have been duly paid by or in respect of any loanee employed in such
• Any person who –
  • willfully delays or obstructs any inspector in the exercise of any power under this clause; or
  • refuses or neglects to answer any question or to furnish any information or to produce any document when required so to do under this clause, shall be guilty of an offence:

Provided that no person shall be required under this clause to answer any question or to give any information which tends to incriminate him.

• Every inspector shall, upon seeking admission to any premises for the purposes of inspection, produce his letter of authorization issued by the

22.   Powers of Inspector to Prosecute

An inspector appointed under clause 19 or any other person authorized by the Board in writing, may, subject to the general or special directions of the Attorney-General, prosecute in any court for all offences under this Bill and for that purpose have all the powers conferred on a public prosecutor by the Criminal Procedure Code (Cap. 75).

PART VI – LEGAL PROCEEDINGS

23. General Provisions as to Offences

Proceedings for an offence under this Bill may, notwithstanding anything in any law to the contrary, be commenced at any time within the period of twelve months from the date on which evidence sufficient in the opinion of the Board to justify a prosecution for the offence comes to the knowledge of the Board.

24.   Court Order on Repayments

(1) The court before whom any person is convicted of an offence under this Bill, shall without prejudice to any civil remedy, order such person to pay to the Board, as the case may be, the amount of any outstanding loan repayments and interest

or any other sum, together with any penalty thereon, found to be due from such person to the Board, and any sum so ordered shall be recoverable as a fine and paid to the Board.

• All sums due to the Board shall be recoverable as debts due to the Board and without prejudice to any other remedy may be recovered by the Board summarily as a civil
• All criminal and civil proceedings under this Bill may, without prejudice to any other in that behalf, be instituted by any inspector or other officer of the Board and where the proceedings are instituted or brought in a court of law, any such inspector or other officer shall prosecute or conduct the
• All sums recovered by legal proceedings in respect of sums which should have been but were not paid to the Board shall be so paid to the

21.   Evidence

In any proceedings under this Bill, a copy of any entry in the accounts of or any extract from the records or register of the Board shall, if stated to be a true copy by a certificate purporting to be signed by the Secretary or a person authorised on his behalf by him, be received in evidence as prima facie evidence of the truth of the contents thereof.

PART VII – FINANCIAL PROVISIONS

22. Financial Year of the Board

The financial year of the Board shall be the period of twelve months commencing on the 1st of July and ending on the 30th day of June of the following year.

23.   Annual Estimates

• The Board shall submit to the Cabinet Secretary an estimate of its income and expenditure during the succeeding financial year six months before the commencement of the financial
• The Cabinet Secretary shall communicate to the Board his approval of the annual estimates at least one calendar month before the commencement of the financial
• The annual estimates shall make provisions for all the estimates of expenditure of the Board for the financial year and shall provide for –
  • the cost of administration of the Board including payment of salaries, allowances, pensions, gratuities and other charges whatsoever payable to the staff and members of the Board;
  • the payment or reimbursement to the members of the Board of monies in respect of expenses incurred during the attendance of the meetings of the Board;
  • the development and maintenance of any property vested in the board.

Except with the approval of the Cabinet Secretary, no expenditure shall be incurred for the purposes of the Board except in accordance with the annual estimates approved under sub-clause (2).

21.   Books of Accounts and Audits

• The Board shall cause to be kept all proper books and records of accounts of the income, expenditure, assets and liabilities of the
• The Board shall, not more than four months or such longer period as the National Assembly may by resolution appoint after the end of each financial year, cause to be prepared and submitted to the Auditor-General –
  • a balance sheet showing in detail the assets and liabilities of the Board at the end of the financial year;
  • a statement of financial activities, income and expenditure during the financial year; and
  • other statements of accounts as may be necessary to fully disclose the undertaking, assets, liabilities and discharge of the functions of the
• The accounts of the Board shall be audited by the Auditor-General or an auditor appointed by the Board with the approval of the Auditor-General.
• The employment of an auditor shall not be terminated by the Board without the approval of the Auditor-General.
• The Auditor-General may give any general or special directions to an auditor appointed under sub-clause (3) and such auditor shall comply with those
• An auditor appointed under sub-clause (3) shall report directly to the Auditor- General on any matter relating to the directions given under sub-clause (5).
• Within a period of four months after the end of each financial year, the auditor shall report on the examination and audit of the accounts of the Board to the Cabinet Secretary, where the auditor has been appointed under sub-clause (3). He shall also transmit a copy of the report and accounts to the Auditor-General.
• Nothing in this Bill shall be construed as prohibiting the Auditor-General from carrying out the inspection of the Board’s accounts or records if it appears to him
• Notwithstanding anything in this Bill, the Auditor-General may transmit to the Cabinet Secretary a special report on any matter incidental to his powers under this Bill, and the Public Audit Act No. 12 of 2003, shall mutatis mutandis apply to any report made under this
• In the exercise of his powers and duties under this Bill, the Auditor-General and any auditor appointed under this clause shall have the same powers as those conferred on the Controller and Auditor-General by Articles 228 and 229 of the Constitution and the Public Audit Act 12 of 2003.

• The Cabinet Secretary shall lay the auditor’s report submitted to him under sub- clause (7) before the National Assembly as soon as practicable, in accordance with provisions of the Government Financial Management Act 5 of 2004, and if he fails or neglects to comply, the provisions of sub-clause (6) of that clause shall apply.
• The fee for any auditor shall be fixed and paid by the

21.   Annual Report of the Board

• The Board shall submit to the Cabinet Secretary as soon as possible and in any event not more than six months after the end of each financial year a report dealing generally with the activities and operation of the Fund during the year to which the report relates and shall include:
  • the audited accounts of the Fund and the Auditor-General’s report on the accounts of the Fund; and
  • such other information as the Board may consider
• The Cabinet Secretary shall within two months after the receipt of the annual report submit the report to Parliament with such statement as he considers

PART VIII – MISCELLANEOUS PROVISIONS

22. Secrecy, Offences and Penalties

• Any person having an official duty or being employed in, or in connection with, the administration of this Bill shall regard and deal with all documents, information, returns and forms relating to applications for loans or to the granting of loans under this Bill as secret and
• Any person having possession of, or control over, or access to, any documents, information, returns or forms relating to a matter referred to in subclause (1) who communicates anything contained therein –
  • to any person other than a person to whom he is authorized by the Board to communicate it; or
  • otherwise than for the purposes of this Bill, shall be guilty of an
• Any person guilty of an offence under this Bill shall, where no other penalty is prescribed, be liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding three

23.   Protection from Personal Liability

No matter or thing done by the Chairman or any member of the Board or any officer, employee or agent of the Board shall, if the matter or thing is done bona fide for the purpose of executing any provision of this Bill, render the chairman, member, officer, employee or agent or any person acting on their directions, personally liable to any action, claim or demand whatsoever.

 

32.   Liability of the Board for Damages

The provisions of this Bill shall not relieve the Board of the liability to pay compensation or damages to any person for any injury to him, his property or any of his interest caused by the exercise of any power conferred by this Bill or by the failure, whether wholly or partially of the exercise of such powers.

33.   Powers of Cabinet Secretary to Exempt

The Cabinet Secretary may by notice in the Gazette exempt any class of persons from all or any of the provisions of this Bill, where in his opinion it is expedient in the public interest to do so.

34.   Bill to Apply to Government Employees

• This Bill shall, subject to the provisions thereof relating to exempt persons, apply to persons in the service of the Government as it would apply if their employer were a private person or a State
• All monies required to be paid under this Bill by the Government in respect of loan repayments in relation to persons in the service of the Government shall be charged on and paid out of the Consolidated Fund without any further appropriations than in this

35.   Regulations

 

The Cabinet Secretary may make regulations generally for the better carrying out the provisions of this Bill, and without prejudice to the foregoing, the Cabinet Secretary may make regulations in respect of the following –

• the receipt, processing and approval of applications for loans and the granting of loans to students;
• the preparation and maintenance of loanees’ records;
• the withdrawal, recovery and cancellation of loans already granted;
• the waiver or exemption from repayment of loans;
• persons who being loanees are or have been living outside Kenya;
• the terms and conditions of service for the Board’s staff;
• the setting-up of procedures for dealing with loan defaulters; and
• the grant of bursaries and

PART IX – TRANSITIONAL PROVISIONS

36. Transfer of Property, Assets and Liabilities

(1) All movable and immovable property and assets which immediately before the commencement of this Bill were vested in or possessed by the Higher Education Loans Board under the Higher Education Loans Boards Act (Cap 213) now

repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, No. 42 of 2012,) and TVET Funding Board (under Technical and Vocational Education and Training Act No. 29 of 2013) shall by virtue of this clause vest in the Tertiary Education Funding Board without further conveyance, transfer or assignment.

• All rights, obligations and liabilities which immediately before the commencement of this Bill were vested in or imposed on the Higher Education Loans Board under the Higher Education Loans Boards Act (Cap 213) now repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, 42 of 2012,) and TVET Funding Board (under Technical and Vocational Education and Training Act No. 29 of 2013) are deemed to be the rights, obligations and liabilities of the Board.
• All references to the Higher Education Loans Board under the Higher Education Loans Boards Act (Cap 213) now repealed, Universities Funding Board and the Kenya Universities and Colleges Central Placement Service (under Universities Act, No. 42 of 2012,) and TVET Funding Board (under Technical and Vocational Education and Training Act 29 of 2013) in any agreement or instrument relating to any property, assets, rights, obligations or liabilities transferred under subclauses
  • and (2) and subsisting immediately before the commencement of this Bill shall, unless the context otherwise requires be read as references to the

32.   Repeal of Cap 213A, Part VII & VIII of The Universities Act No. 42 of 2012, Part IX of TVET Act, Section 5B of the Industrial Training Act, Cap 237 and General Savings

• The Higher Education Loans Boards Act (Cap 213) referred to as the former Bill is hereby
• Notwithstanding the repeal of the former Act, all Acts, directions, orders, appointments, requirements, authorizations, other things given, taken or done under, and all funds, assets and other properties acquired in virtue of that Act, shall, so far as not inconsistent with this Bill be deemed to have been given, taken, done or acquired under this
• All regulations made under the former Act and in force immediately prior to the commencement of this Bill shall continue to be in force but may be amended or revoked by regulations made under this act.