In a recent parliamentary session, Deputy Speaker Thomas Tayebwa provided guidance to the Minister of Finance, Planning, and Economic Development, Matia Kasaija, on addressing funding shortages affecting the Higher Education Students’ Financing Board (HESFB) and its loan scheme.
Kasaija was encouraged to utilize a three percent supplementary budget to cover a shortfall of 13 billion Ugandan shillings in the HESFB’s funding. The discussion took place during a plenary sitting on October 10, 2023.
The finance minister revealed that out of the 44.9 billion shillings required to finance HESFB for the 2023/2024 financial year, only 31 billion shillings are available. HESFB is responsible for implementing the student loan scheme.
To remedy the issue of funding shortfalls, Kasaija announced plans to prepare a supplementary budget for submission to the Parliament at an appropriate time.
Deputy Speaker Tayebwa expressed concern that students were being dismissed from educational institutions due to loan defaults. He inquired if the government had communicated with these institutions to prevent the expulsion of students.
Tayebwa emphasized the importance of prioritizing the loan scheme, noting that it has been beneficial to students from regions such as Karamoja, providing them with opportunities in fields like medicine.
Several parliament members expressed support for the loan scheme. Remigio Achia called for affirmative action, highlighting its role in enabling young people across the country to access quality education. Kumi District Woman Member of Parliament, Christine Apolot, urged the ministry to allocate the full 44 billion shillings required for the scheme, emphasizing the importance of education in Uganda’s development.
Minister Kasaija agreed to follow the guidance, stating that the ministry would allocate the necessary funds in accordance with the law.
HESFB’s primary purpose is to provide loans and scholarships to Ugandan students who have qualified for accredited courses in recognized higher education institutions but lack the financial means to support themselves.
In the previous financial year (2022/2023), HESFB provided loans and scholarships to 625 students, as reported by Minister Kasaija.