Strategic Plan - Higher Education Loans Board

Transcription

Our Mandate
Disburse loans, bursaries and scholarships to Kenyan
students pursuing higher education in recognized
institutions as well as recover loaned out funds, and to
establish a revolving fund.
Our Vision
Our Mission
Our Core Values
Our Motto
A loan available for every Kenyan enrolled in higher
education
To provide affordable loans to Kenyans pursuing higher
education through adequate mobilization and prudent
management of resources.
•
•
•
•
•
Accountability
Courtesy
Fairness & Transparency
Competence
Teamwork
Working with you to finance higher education now and
in the future.
Higher Education Loans Board
Strategic Plan 2013-2018
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CHAIRMAN’S FOREWORD
T
he Higher Education Loans Board (HELB) Strategic
Plan is a clear roadmap of the Board as an enabler
of the Country’s development agenda of Vision 2030
through training a highly competent Human Capital.
It is the Board’s commitment into ensuring equity in
accessing financial resources to higher education for all
Kenyans as spelt out in the current Constitution.
The year 2012/2013 was a successful one for HELB as
we registered satisfactory performance in our initiatives
in the transformation of financing of higher education
without altering the values on which we were founded; i.e. Accountability, Courtesy,
Fairness and Transparency, Competence and Teamwork that continues to set us apart.
Significantly, our progressive efforts intensify loans disbursement and to turn around loan
recovery loans were realized through the application and enforcement of the Constitution
2010, enactment of Universities Act 2012, TVET Act 2013 and the recommendations in
Sessional Paper No. 14 of 2012 on Education and Training.
As a result of the above changes in Education sector, HELB has assessed it’s capacity to
achieve its mandate as a result of the changes in the operating environment through a
mid-term review of 2009 – 2014 Strategic plan which
“Education
is
the
could not sufficiently meet the new demands.
I am therefore pleased to share our Strategic Plan
2013-2018, hinged on the progressive implementation
of the Constitution taking into consideration other
legal framework that has seen the higher education
sector experience rapid expansion overstretching the
services of HELB with the challenges to avail more
funds to satisfy the increased demand for funding
higher education.
strongest
and
the
most lethal weapon
in reducing the gap
between the rich and the
poor” – Nelson Mandela
We have set out strategies and key initiatives for the next five years as presented in our
plan. For the 2013-2018 period, we shall continue to embrace a comprehensive Strategic
map supported by detailed Key Results Areas (KRAs) in an effort to make HELB successfully
achieve its mandate, Vision and Mission. The Strategy map details the Board and
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Management visualization of how we see the future looking like during the plan period.
The Strategic Plan is anchored, on among others, four pillars; Financial Sustainability,
Customer Service Delivery; Internal Processes Re-engineering, Institutional Capacity and
Corporate Governance
I wish to assure our partners that, all the stake as a Board we are deeply committed to this
strategic plan to availing loan for every Kenya enrolled in higher education. I am confident
that with the support of the Government, other key players in the education sector and
various stakeholders we will achieve what we have set out to do in this plan document.
Finally, we remain committed to deliver quality service to all our stakeholders and remain
on a sound financial base to support enhanced lending and loan recovery processes as
our core functions.
D. Ndegwa Wachira
Chairman, Board of Directors
With you all the way
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BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
The current office holders are as follows
Board of Directors
1. Mr. David Wachira 2. Mr. Charles Ringera 3. Dr. Belio R Kipsang 4. Dr. Kamau Thugge
5. Mr. Habil Okunda Olaka
6. Prof. David Some
7. Ms. Victoria Chepseba 8. Mr. Mwenda Thiribi 9. Dr. Timothy Wachira
10. Mrs. Jacqueline A Mugo OGW 11. Prof. Mabel Imbuga Chairman, Board of Directors
Chief Executive Officer and Board Secretary
Principal Secretary, Ministry of Education, Science and Technology
Principal Secretary, National Treasury
Chief Executive Officer, Kenya Bankers Association
Chief Executive Officer, Commission for University Education
Independent Member
Independent Member
Vice Chancellor Daystar University
Representing Private Universities
CEO, Federation of Kenya Employers
Representing Federation of Kenya Employers
Vice Chancellor Jomo Kenyatta University of Agriculture & Technology
Representing Public Universities
Heads of Division
1. Mr. Victor Lomaria 2. Mary Wachira-Muchee (Mrs) 3. Mr. Shem A Gichimu Head of Operations
Head of Research, Strategy and Planning
Head of Finance
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Contents
INTRODUCTION
1
HELB MANDATE, FUNCTIONS,VISION, MISSION
& CORE VALUES 6
SITUATION ANALYSIS
2013-2018 STRATEGY MAP AND PILLARS
10
24
IMPLEMENTATION OF THE STRATEGIC PLAN
47
RISK MANAGEMENT
48
MONITORING AND EVALUATION
50
ANNEXES
52
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EXECUTIVE SUMMARY
T
he Higher Education Loans Board is a State
Corporation established in July 1995 by an Act
of Parliament H E L B A c t C a p 2 1 3 A , with a mandate
to provide financing for higher education in form
of Loans, Bursaries and Scholarships to Kenyans
studying in recognized institutions of higher learning.
The Board has embraced Strategic Planning as a key
performance improvement initiative in enabling
successful delivery of its mandate. The current
Strategic Plan w a s adopted in 2009 and was
earmarked for implementation up to 2014.
However, owing to changes prevalent in the operating environment and the need
to assess progress in achieving the planned objectives, the Board found it prudent
to conduct a mid-term review of the Strategic Plan. The review process indicated that
only 30% of the Strategic plan had been achieved against an expected achievement of
50%. Due to the changed environment a decision was made to prepare a new Strategic
plan taking into consideration requirements of Vision 2030, Kenya Constitution 2010,
Universities Act 2012, TVET Act 2013 and the recommendation in Sessional Paper No.
14 of 2012 on Education and Training. After considering these emerging issues, HELB has
formulated four main pillars which will guide its operation for the next five years. The Four
Pillars are laying emphasis on Financial Sustainability, Customer Service delivery, Internal
Business processes re-engineering and Institutional Capacity and Corporate governance.
In the implementation of this Plan, HELB is committed to adhere to the legal and regulatory
requirement as will be provided in the HELB Act Cap (213A) which is currently under review.
The Strategic Plan will be implemented through departmental and individual work plans
as outline in the Implementation matrix. The Monitoring and Evaluation component has
been factored in, to ensure that periodical reports are available. This shall be done by the
newly created Strategy, Research and Planning division. The monitoring and evaluation
will ensure that any exogenous factor that may adversely affect the expected outcome of
the implementation is addressed immediately.
The Plan is organized into seven chapters. Chapter one present the background of HELB,
report of the review of the strategic plan 2009-2014 including the challenges and the lessons
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learnt. Chapter two deals with the mandate of HELB, the statement of corporate identity
including the Vision and Mission statements and the Core values. Chapter three deals with
the situational analysis which looks at the current situation both within the institution and
at the Macro level. The analysis has been done using both the PESTL and SWOT analysis. It
also looks at the stakeholders’ analysis. Chapter four present the Strategy Map Framework
and the four Strategic Pillars. It also includes the implementation matrix with the strategic
initiatives together with the Activities, Key Performance indicators, timelines, person
responsible and the budget requirement. Chapter five deals with implementation of the
strategic plan, while chapter six deals with Risk management indicating the risk profile and
the mitigation measures. Chapter seven deals with monitoring and evaluation of the plan.
Mr. Charles Ringera
Chief Executive Officer and Board Secretary
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LIST OF ABBREVIATIONS
CEO
Chief Executive Officer
CUE
Commission for University Education
CRB
Credit Reference Bureau
DUC
Differentiated Unit Cost
GoK
Government of Kenya
HELB
HELF
Higher Education Loans Fund
HOD
Heads of Division/Department
ICT
Information Communication Technology
JAB
Joint Admission Board
KRA
Kenya Revenue Authority
KU & CPB
Kenya Universities & Colleges Placement Board
MTP
Medium Term Plan
NHIF
National Health Insurance Fund
NSSF
National Social Security Fund
PESTLE
Political, Economic, Social, and Technological Legal
SWOT
Strengths, Weaknesses, Opportunities, Threats
SMS
Short Message Service
TIVET
Technical, Industrial, Vocational and Entrepreneurship
USLS
University Students Loans Scheme
UFB
University Funding Board
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1.0 CHAPTER ONE:
INTRODUCTION
1.1 BACKGROUND
H
igher Education Loans Board was established by an Act of parliament Cap 213A of
1995. To enable HELB respond to the challenges of providing adequate financing to
students pursuing higher education, an organizational review was done in 2005, which
culminated into a restructuring process implemented in 2006/2007. At the same time,
the first Strategic plan was to end in 2008. A new Plan covering the period 2009-2014 was
prepared.
Due to the changing environment in the country with the enactment of the Kenya
Constitution 2010 and the enactment of the Universities Act 2012 and the TVET Act 2013,
together with the recommendations of the Sessional Paper no. 14 of 2012, HELB found it
necessary to carry out a Mid-term review of the Strategic Plan 2009-2014. This commenced
in September 2012. The terms of reference during this exercise were to review the level of
accomplishment and give the necessary recommendations on the way forward.
1.2 REVIEW OF 2009- 2014 STRATEGIC PLAN
T
he Board had identified five (5) key objectives to focus on during the five year period
(2009-2014). In the plan, the objectives were broken down into strategies. The specific
strategies were further broken down into detailed action plans that outlined the various
activities, timeframes, key performance Indicators and responsibilities. While the HELB’s
Strategic Plan was supposed to be formally assessed twice or once a year, assessment and
evaluation did not take place during the entire implementation period of two and half (2½)
years. In best case scenario, performance data should be available at the departmental
level, while others are determined at the aggregate or corporate level. However, evaluation
of the strategic objectives focused on the data available at the corporate level which was
not readily available. Majority of the data was available in the departments and not at the
corporate level. It is evident from the review process that several intents were achieved
through different fronts as a result of deliberate and concerted efforts, policy initiatives
and direction given by the top management and support from all HELB staff. It emerged
that even though there was achievement of some of the set objectives, the performance
monitoring and evaluation lacked coordination from a central point. This was because
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there was no ownership of the monitoring and the evaluation process of the Corporate
Plan.
1.3 ACHIEVEMENT LEVEL
T
he five (5) strategic objectives as outlined in the Strategic Plan 2009- 2014 that were
evaluated to determine the level of achievement are:
1. To finance all qualifying students.
2. To improve financial base by mobilizing funding from external stakeholders to
bridge the financing deficit between loaning levels and available resources.
3. To improve productivity of the human capital by anchoring functional workplans on an effective Performance Management System.
4. To formulate and implement communication strategy.
5. Carry out continual improvement of infrastructure.
Some of the major achievements noted during evaluation of the Strategic Plan 2009/102014 are summarized under the strategic objectives as indicated here below;
Strategic Objective 1: To finance all qualifying students. In order to achieve the above
strategic objective several strategies were planned which included;
Strategy 1: Finance 100% of the enrollment to universities – HELB only managed
to finance 39% of the enrolled students to the universities.
Strategy 2: Maximize Loan Recovery- various activities were implemented the
key one being networking with partners that included KPLC, NSSF, Nairobi Water,
NHIF, Alumni and taking other measures which made the recovery to realize
more than 10 % annual growth.
Strategy 3: Develop and upgrade various loan products to suit different types
of clients - Alternative loans were availed at 12% for the postgraduate students.
More effort was made to Partner with banks like NBK, KCB and CBA to avail loans
to students and their parents who could not qualify for the HELB loans. The plan
was not vigorously pursued.
2
Strategy 4: Position HELB as agent for corporate bodies and donors for loans,
bursaries and scholarship grants- Few donors were identified among them, Visa
Oshwal, Ford Foundation, Funzo Kenya, the strategy was not vigorous pursued
due to lack of internal required capacity.
Strategy 5: Lobby increased Capitation – the plan was to pursue government
to allocate more funds to finance higher education, the contribution from the
Government totaled Kshs.2.365 billion in 2013/14 against the requested amount
of Kshs 14.5 billion which is equivalent to 15% of the expected amount.
Strategic Objective 2 : Mobilize additional resources through financial market- there
was an attempt to approach the market to finance education where a concept paper was
prepared and presented for approval, but this was put on hold.
There were other three strategies that include; consistently review interest rates,
Risk management for loans/ Self-protection policy and Investment in property. The
implementation of the strategies were not successful due constraints in terms of policy
and prevailing macroeconomic conditions.
Strategic Objective 3: Human Capital Capacity- A number of policies had been put in
place for implementation to address weaknesses in the human resource management.
Several initiatives on training on performance management, ICT and governance have
been conducted for both Board members and management staff. ICT infrastructure
systems were put in place while sound financial management system was improved to
recognize the ICT integration to assist in decision making.
Strategic Objective 4: Improve Communication by implementing the Communication
Strategy. HELB has managed the corporate image positively through communication,
promotion of Corporate Social Responsibility (CSR) activities, holding events for
stakeholders and reaching out to government and private sector institutions and
development partners in the promotion of education financing in Kenya. In managing
communication, various channels that included print and electronic media were used.
Strategic Objective 5: Continual improvement of the infrastructure. Information
Communication Technology (ICT) was recognized as key to the communication strategy.
This infrastructure has been strongly supported to improve facilities like website to
strengthen external communication.
Implementation of the Plan- The implementation of the plan was carried out with
minimum focus and without close monitoring and evaluation process. Management
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focused mainly on the government performance contract which was not in sync with the
Strategic Plan and in this regards the overall achievement of the Strategic Plan 2009/10 –
2013/14 was approximately 30 percent compared to the expected 50% achievement level
as a mid-term review benchmark.
1.4 CHALLENGES AND LESSONS LEARNT
Section 1.3 above outlined the achievements noted, but in the process of realizing these
results, several challenges remain and need to be addressed in the next Strategic Plan.
Some of these are;
(i)
Overreliance on Government capitation for funding;
(ii)
Inadequate funding due to limited student funding budgetary allocation;
(iii)
Lack of synergy within the functional areas leading to some level of inefficiencies;
(iv)
Uncoordinated effort between HELB disbursement system and University semester
cycles;
(v)
Lack of clarity on some roles and reporting lines and lack of internalization of the
Strategic Plan resulting in gaps in the implementation;
(vi)
Incomplete records inherited from the parent Government Ministry leading to
costly recovery efforts;
(vii)
Lack of compatibility of disparate software applications, which challenged a core
requirement of a complete automated business process environment.
(viii) The regulatory environment continued to challenge the organization due to limitation of the Board to achieve critical mandate.
1.5 WAY FORWARD
S
ince the preparation of the Strategic Plan 2009-2014 whose mid-term review has just
been concluded, it has been noted that the Kenyan Education Sector has witnessed
major developments. Several reforms are also currently taking place which are expected
to increase enrollment numbers at all levels. This is expected to put more pressure in the
demand for funds to finance education in Post-Secondary institutions. In the context of
these anticipated changes, the current Strategic Plan of HELB needs realignment to the
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new education policies and legislations, and the resultant implications. It is against this
background that the new strategic plan to guide HELB’s direction in the next five years
(2013-2018) has been prepared. Subsequent chapters therefore focus on charting a new
direction for the Board.
HELB bridges the gap
between the rich and the
poor through education
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2.0 CHAPTER TWO:
HELB MANDATE, FUNCTIONS,VISION, MISSION &
CORE VALUES
W
hen the Higher Education Loans Board (HELB) was established by an act of
Parliament CAP 213A of 1995, it took over all the function and the responsibilities
of management of higher education financing which was by then being managed by the
University Student Loans Scheme (USLS), a department in the Ministry of Education.
Under the scheme, Kenyan students pursuing higher education at Makerere, Nairobi and
Dar-es-Salaam universities received loans to cover their tuition and personal needs, which
they would repay on completion of their education. However, it is important to note that,
financing of higher education started in 1952 when the then colonial government awarded
loans under the Higher Education Loans Fund [HELF] to Kenyans pursuing university
education in universities outside East Africa notably Britain, the USA, the former USSR,
India and South Africa.
But USLS lacked the legal basis to recover matured loans from loanees. In addition, the
general public and university students wrongly perceived that the loan was a grant from
the government, which was not to be repaid. It is against this background that, HELB was
established with the main mandate of sourcing for funds, allocating and disbursing to
needy Kenyan pursuing higher education in recognized institution of higher learning. It
also has the mandate of recovering all mature loans disbursed since 1974.
HELB started operations with initial staff seconded from the Ministry of Education in August
1995 with funding from the World Bank. In November 1996 its first batch of employees
were engaged. Initially it started with eighty (80) staffs that were disbursing loans to only
undergraduate student in public universities under the government sponsored program.
Currently HELB has one hundred and twenty (120) staff managing a total of eight (8)
products for students in both public and private universities and in the TVET institutions.
2.1 MANDATE, OBJECTIVES AND FUNCTIONS OF HELB
The Board derives all its mandate and functions from the HELB Act (Cap 213A). The
functions are categorized into three types, namely: -
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•
Short term
•
Medium term
•
Long term
The short-term functions include:
a) To set the criteria and conditions governing the granting of loans including the rate
of interest to be charged;
b) To receive and consider all loan applications from eligible persons (students) who
wish to pursue higher education;
c) To approve and/or reject such applications in accordance with the provision s of
the Act;
d) To determine the maximum number of eligible persons to be granted loans in any
one particular year;
e) To invest any surplus funds not currently required for the running of the Board in
any investment authorized by law;
f) To recover matured loans.
The medium functions include
a) To establish a Revolving Fund;
b) To solicit for funds and other assistance to promote the functions of the Board;
c) To enter into contracts with financial institutions for the purpose of disbursement and recovery of the loans.
Long-term functions include
a) To establish links with other bodies and /or organizations within and outside
Kenya as considered necessary for the purpose of realizing the goals of the Board.
This is to enable HELB to become a fully-fledged financial institution on student
financing to attract syndicated funds from development partners, global financial
institutions and big ticket donors.
2.2 STATEMENT OF CORPORATE IDENTITY
A
statement of corporate identity is an articulation of the uniqueness of the organization
which identifies the basis of the organization’s brand. The corporate identity has
immense value to HELB in terms of acceptance and positioning in the society and
this value will need to be appreciated and built upon. The corporate identity promotes
the Vision, Mission and Core Values of the Board.
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Taking into consideration, the mid-term review recommendations and emerging
issues the following are the new Vision, Mission and Core Values of HELB.
The Vision statement
A Vision is a desired future status of the Board that will guide the thinking, decision making
and the way the Board would like to conduct business to achieve its future dreams. The
Vision statement of the Board is:
“A loan available for every Kenyan enrolled in higher education’’
Mission Statement
A Mission statement states the purpose for the existence of HELB. It specifies the end
results that the Board is seeking to achieve, for whom and how it will go about it and what
resources are required. The new Mission statement is:
“To provide affordable loans to Kenyans pursuing Higher Education through adequate
mobilization and prudent management of resources”
HELB transforms
lives
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- Polite
- Calm
- Tactful
Employees will
endeavor to be
courteous to all
customers at
all times. While
discharging duties,
they shall be:
- Respectful
- Attentive
Employees will be
accountable to key
stakeholders of
HELB and adhere to
the highest ethical
standards in performing
their duties. They shall;
- Act in good faith
- Demonstrate highest
level of integrity
- Create an atmosphere
of trust & confidence
Courtesy
Accountability
Employees will strive
to exercise fairness in
service delivery. They
shall:
- Treat all customers
equally
- Ensure equity
through providing
equal opportunities
for all
- Ensure absence of
double standards
Transparency
& Fairness
Employees will
strive to offer
service with utmost
competence. In the
conduct of every
aspect of their
tasks, they must:
- Act with care
and diligence
- Display
professional
skills
Competence
Employees will maintain open
communication and maximum
cooperation internally and
externally. Staff shall strive
to ;
- Value contribution of
others
- Have clear communication
- Maintain openness
and accessibility to
stakeholders
- Have active participation
Teamwork
To support achievement of the Vision and Mission, the Board will have to be guided by appropriate values. These are set of guiding
principles that will be shared and practiced by staff and stakeholders. In consideration of the changed environment, the core
values were identified as;
Core Value Statement
3.0 CHAPTER THREE:
SITUATION ANALYSIS
3.1 NATIONAL DEVELOPMENT AGENDA AND KENYA VISION 2030
T
he Government of Kenya (GoK) has recognized the important role education and
training play in maximizing the potential of human resource for individual, community
and national development. This has been discussed in various policy and development
documents which emphasized the need for efficiency and better management in the
utilization of public resources to enable the Government achieve its strategic objectives of
growth, productivity and improvement in service delivery.
The same objectives are currently encapsulated in Vision 2030 blue print, where
education has been recognized as an enabler in realization of its goals. Its main objective
is to transform the country into a modern, globally competitive, middle income country,
offering a high quality of life for its citizens by the year 2030. To achieve this goal, the
Government intends to put in place measures that will raise the national GDP growth
rate from the current 5.1% to more than 10% by 2017. The Government is committed to
achieving the International development Commitments such as the eight (8) Millennium
Development Goals (MDGs) and increasing the transition from secondary to university
level from 3% in 2008 to 10% by 2024 as outlined in Sessional Paper No.14 of 2012.
Pursuant to this focus, HELB will play a vital role in financing education in post-secondary
institutions.
It is worth noting that HELB is currently able to support only 19% of the students who
qualify for admission to the Public and Private universities leaving the rest to seek
alternative financing for their post-secondary education. Currently the funding of
university education by the government is based on uniform costing as opposed to unit
cost for all courses offered at the Colleges. This does not also take in to account the need
for support for different individuals as the sponsorship qualification is on merit only. This
result into provision of grants to all government sponsored students admitted to Public
universities based on merit. The grant from the government is not repayable and thus it
is a sunk cost that cannot be available to future generations. The resultant implication is
unsustainability of higher education financing by the government. During the Plan period
HELB intends to lobby for more funding to be channeled through its student finance
distribution system for onward disbursement as loans repayable upon completion of
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studies. This will ensure sustainability of higher education financing as revolving Fund to
support future generations.
There has been rapid expansion in the higher education sector in Kenya. More people
are now seeking higher education than in the past. This has overstretched the services of
institutions in this sector including HELB which is faced with the challenge of availing more
funds in order to satisfy the increased demand for funding of post-secondary education.
The Kenya Constitution 2010 also present a new dimension for HELB to implement its
mandate as outlined in various Education Acts. This has informed HELB when preparing
this Strategic Plan 2013/14-2017/18 to focus on achieving its mandate by addressing the
changing education environment.
3.2 ROLE OF HELB IN ACHIEVING KENYA VISION 2030
T
he Kenya Vision 2030 is the development blue print for the period 2008-2030 which
aims at transforming the country into a modern, globally competitive, middle
income country, offering a high quality of life for its citizens by the year 2030. To achieve
this goal, the Government intends to put in place measures that will raise the national
GDP growth rate from the current 5.1% to o v e r 10% by 2017, creating more employment
opportunities and bringing more equitable development in all regions of the country.
SOCIAL PILLAR
(Investing in the People of Kenya)
SOCIAL PILLARS
SECTORS
(Building A Just
Cohesive Society)
•
•
•
•
•
•
•
Education and Training
Health
Environment
Housing and Urbanization
Gender, Children and Social Deve lopme nt
Youth and Sports
Labor (Manpower Development)
Figure 1-The Vision 2030 social pillar with education as the main enabler
(Source-Vision 2030 secretariat)
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(i)
The government takes cognizance of the fact that provision of quality education, training and research is critical to achieving the Vision 2030 goals. In provision of quality
education and training, HELB will play a key role by ensuring that
(ii) There is increased access to higher education by providing financing to all Kenyan enrolled in higher education institutions. This will ensure that there is active participation in economic activities by all Kenyan since they will have the requisite knowledge;
(iii) More funds are channeled to finance students in the TVET institution who will be
a major input in providing the technical skills required in achieving a middle level
economy.
3.3 MAJOR CHALLENGES THAT MAY AFFECT HELB OPERATIONS
In striving to fulfill the mandate of HELB, in contributing to the National development, the
following challenges may adversely affect the overall performance.
(i)
The global financial crises which may lead to a decline in the foreign exchange
earnings, slowing the national economic growth, hence affecting the level of
employment which would in turn affect the repayment of HELB loans. With rising
domestic unemployment, Kenyans may in turn seek alternative employment
opportunities outside the country which will complicate loan recovery matters for
HELB.
(ii)
The ever rising inflation rates due to increase in fuel and food prices. This may
result to Kenyans placing first priority to the purchase of basic needs, leading to low
repayment of HELB loans and at the same time increasing demand for HELB loans
due to insufficient/inadequate family income. This is due to the ever rising inflation
rate leading to an increase in the cost of living. Currently inflation is at 7.76% and
the macroeconomic policies are geared toward maintaining it below double digit.
The Kenyan economy has been growing at a very slow pace of 2.8% in 2009 to 5.1%
in 2012 against a target of 6.2%. The forecast is that it will grow at more than 10%
by 2017.
(iii) The high population growth rate together with increased rural urban migration in
search for employment which is unmatched with an equal fast creation of economic
opportunities. This has led to a high unemployment rate amongst the youth and
widespread poverty. This in turn increases the demand side for higher education
financing both in number of applicants and the amount allocated to applicants.
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(iv) Economic growth and development depend on the peace and stability within and
outside our borders. Lack of this may hamper the social welfare of our citizen which
may affect the impact of HELB loans to the nation as beneficiaries may not be able to
utilize their knowledge to engage in economically gainful activities.
(v)
Varying government priorities in allocation of resources. The government
concentrates more on provision of funding to basic education up to secondary
school level. This leaves the post-secondary education with inadequate funding. This
is due to the belief that provision of basic education is more beneficial to the society
while for higher education is more beneficial to the individual. There are also other
high priority service provision areas such as security and infrastructure.
3.4 PROBLEM STATEMENT
This section analyses the various problems that HELB is intending to address by
implementing the 2013/14-2017/18 Strategic plan.
3.4.1
INCREASE ACCESS AND EQUITY
C
urrently the Board covers only 19% of the students attaining C+ and above in KCSE. At
the same time the amount being allocated is low compared to the ever rising cost of
living and the high tuition fees charged to self-sponsored students. HELB target to increase
this coverage to 36% by 2018 and at the same time increase the average amount from
the current Kshs 37,000 to Kshs 50,000 per year. As per the current Universities Act 2012,
the Board is expected to finance students based on Differentiated Unit Cost (DUC) model,
but this continues to be challenging given the low capitation and as such this planning
document is based on uniform costing and not DUC. To achieve the coverage of students
in terms of numbers from the current 19% to 36% by 2018 for those who have attained
minimum university entry (C+), the Board has planned to grow the current student
financing budget of Ksh.5.4 billion to Kshs 19.054 billion by 2018 through deployment of
various strategies. Below is the projected student and operating financing requirements
for HELB up to 2018. This includes one billion per year in 2014/2015 and 2015/2016 for
construction of HELB headquarter.
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14
123,500
169,520
204,506
315,900
359,632
406,968
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
Source: HELB
No of
KCSE
with
C+ and
above
Year
137,687
102,705
75,198
41,115
32,776
40,800
500
450
300
200
Open
University
Inbased
university
1st time applicant funded
Table 1.1 Funding requirements 2012 -2018
247,328
180,779
131,976
113,576
101,000
80,676
Continuing
student
38,000
27,500
22,000
16,500
13,000
10,249
TVET
student
19,054
13,052
10,279
7,744
6,944
5,459
KES “M”
Total
student
budget
Projected Funding Requirement upto 2018
1,260
1,152
2,055
1,966
1,009
642
KES “M”
CAPEX &
OPEX
20,314
14,204
12,334
9,710
7,953
6,101
KES “M”
Total
budgetary
requirement
3.4.2
INSTITUTIONAL MANAGEMENT AND LEADERSHIP
HELB is an established and reputable institution of financing higher learning in Kenya. Its
operations are guided by her mandate whose achievement requires adequate planning.
This is required to assist in matching the increased demand for student financing with the
existing resources. HELB will put in place stringent control measures to ensure that the
scarce resources are utilized prudently. It will also ensure that effective leadership in all
operational areas is put in place as the institution concentrate on mobilizing resources to
close the ever widening gap between the demand and the available resources.
3.4.3
LINKAGES AND PARTNERSHIPS
HELB is working with limited number of partners, but for the purpose of meeting its
mandate, a number of linkages and partnerships particularly with financial institutions,
industry, community organizations, institutions of higher learning, middle level colleges
and training centers will be established. Through these collaborations, HELB will be able
to engage into joint education financing projects and create awareness of its products
and services. In this regard, HELB will formulate a linkages policy/strategy which will guide
the establishment and operations of collaborations through MoUs and other partnership
agreements.
3.5 EXTERNAL ENVIRONMENT ANALYSIS
In the volatile environment which we operate in, it is challenging to predict the future.
This external environmental analysis assesses the conditions and changes expected to
prevail in the operating environment and for which HELB have no control. The PESTL
analytical criterion is used in this analysis. It assesses five key elements in the operating
environment namely; Political, Economic, Social, Technological, and Legal (PESTL)
factors expected to have potential impact on the Board’s operations either positively
or negatively. The outputs of the PESTL analysis are the key opportunities and threats for
the Board.
3.5.1
POLITICAL FACTORS
Going by the political temperatures and developments, trends indicate that the Kenyan
political context is likely to remain both complex and volatile. HELB needs a favorable
political environment if it is to fulfill its mandate. Political factors that may affect operation
include;
15
(i)
The adoption of the Constitution 2010, has brought with it transition dynamics
and a number of processes will require time before settling down;
(ii)
Impact of the relationship between the National and the County government;
(iii)
Political challenges and expectations for the government which is the first one
under the Kenya Constitution 2010;
(iv)
Changes in the administration of education sector and the implication of the
various Education Acts including establishment of new bodies (UFB and TVET
Funding board) to manage education financing both for the universities and the
TVET institutions;
(v)
Fiscal policy issues such as budget allocation where the government and the
parliament may have differing priorities.
3.5.2
ECONOMIC FACTORS
E
conomic growth in the plan period is expected to average about 5-10% per annum
provided that the political environment remains relatively peaceful and stable. There
will be sustainable economic growth, if the government has sound Macro-economic
Policies and effectively implement National plans including MTP II projects. This is
expected to generate adequate government revenue through taxes. The factors that may
affect this and in turn affect HELB operations include;
(i)
Global financial crisis which may affect the level of economic growth thus reducing
the employment level of our graduates leading to low loan recovery. This may also
result into inadequate funds allocation from the exchequer;
(ii)
Continually rising inflation rates leading to high cost of living which in turn may affect
the national government budget allocation due to competing priorities leading to
budget cuts and expenditure freezes. Inflation rise may be as a result of declining
value of the Kenya currency.
(iii)
Slow economic growth may reduce government revenue leading to inadequate
budgetary allocation from the exchequer;
(iv)
Lack of adequate employment opportunities due to slow economic growth may lead
to brain drain to the developed countries thus reducing loanee who are servicing
their loans and reduced government revenue due to reduced taxes. This may lead
into inadequate exchequer allocation.
16
3.5.3
SOCIO-DEMOGRAPHIC FACTORS
The social environment is imbued with some significant challenges such as levels of
poverty and dimension of poverty gaps and regional imbalances. The factors that may
affect the operation of HELB include;
(i)
Mainstreaming of gender, persons with disabilities, members of marginalized
communities and minority group may affect the beneficiaries of HELB loans in
terms of loan repayment due to cultural beliefs;
(ii)
Impact of HIV& AIDS affects the Socio-cultural environment making an indelible
dent on productive labor at all levels of society leading to a high number of
dependents. These are expected to take up more resources leaving fewer resources to
economically productive activities;
(iii)
The rural-urban migration and the factor of brain drain vide migration of
professionals and highly qualified medical personnel are also challenges identified
within this arena especially at this time when the counties need more skills if they
are to develop and become economically stable;
(iv)
The increasing population growth of youth of age 15-35 years continues to
increase demand for access to education in post-secondary institutions leading
to increased d e m a n d for funds to finance this education.
3.5.4
TECHNOLOGICAL FACTORS
Information Communication Technology (ICT) as a major input in acceleration of
economic growth by providing an effective and efficient service delivery channel has seen
rapid advances, development and expansion for both hardware and software. These rapid
changes may lead to;
(i)
Increase in cybercrimes and frauds leading to insecurity of data and information;
(ii)
Increased access to services being provided by HELB at a lower cost of operation;
(iii)
Increased cost of procurements of ICT equipment requiring frequent upgrade;
(iv)
Unmatched coverage with the technological knowhow skill especially in areas
where the poverty and illiteracy level is high. This leads to low uptake of
product/services being provided through online medium in those parts of the
country.
17
3.5.5
LEGAL AND REGULATORY FRAMEWORK
T
he Constitution of Kenya (2010) articles 43.1(f), 53.1(b) and 55(a) makes education
a right of every Kenyan while the Kenya Vision 2030 underscores the importance of
education in ensuring relevant human and social capital for sustainable development. The
legal framework that may affect the operation of HELB include
(i)
The Universities Acts (2012) and TVET Act (2013) requirement that all students
should be funded by HELB. This is not matched with the required resources
allocation;
(ii)
The current age of majority where an adult is a person at age of eighteen years and
above. This is the only person who can engage in a contractual obligation. This is
resulting into a number of university students being locked out of the HELB loans
as they are admitted to university when they are below the age of majority and
hence cannot borrow from HELB;
(iii)
The provision in the Constitution on gender issues and the one third requirement
rule. HELB has to adhere to this requirement, both at the time of funding students
and at the time of recruiting staff;
(iv)
The requirement that the salaries and benefit for the Public service and State
Corporation are being managed by the Salaries and Remuneration Commission.
This will lead to flight of the best brain from the public service to the private sector
as the equalized remunerations are too low to attract and retain the best brains.
3.6 SWOT ANALYSIS
SWOT analysis is a framework for generating strategic alternatives (options) from a
situation analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities and
Threats. The SWOT analysis classifies the internal aspects of an organization as either
strengths or weaknesses and the external situational factors as either opportunities or
threats. The SWOT for HELB is outlined here below;
3.6.1
INTERNAL ENVIRONMENT ANALYSIS
Internal environment analysis assesses the key organizational assets, resources,
skills and processes that represent either strengths or weaknesses. These were identified
as follows:
18
3.6.2
Strengths:
a) Customer friendly culture
b) Skilled and knowledgeable staff and Board on HELB operations;
c) HELB is the only Government agency for financing higher education;
d) Competitive products and services;
e) Leverage on technology;
f)
3.6.3
Mandate anchored on law/ enabling legislative environment.
Weaknesses:
a) Over dependency on GOK budgetary support;
b) Weak loan compliance/inspection mechanism;
c) Incomplete records making it difficult to trace loanees;
d) Inadequate infrastructure and systems integration;
e) Weak validation process;
f) Low financial literacy and product knowledge by the market;
g) Insufficient risk analysis and management system;
h) Inefficient business processes;
i) Inadequate communication with stakeholders.
3.7 EXTERNAL ENVIRONMENT ANALYSIS
The analysis of the external environment of HELB focuses on five key dimensions, namely,
Political, Economic, Social, Technological and Legal (PESTL). The outputs of the PESTEL
analysis are the key opportunities (positive or favorable conditions existing in the external
environment) and threats (negative or unfavorable conditions). Below is the summary of
the opportunities and threats.
3.7.1
Opportunities:
a) Government of Kenya support
b) Breadth and depth of development partners
c)
Collaboration with corporate foundations and Individual
d) Devolved funds (county and constituency)
19
e) Financial market
f)
Property investment
g) Growing Customer base
h) Exploit technological advancement
i)
Enabling legislative framework
j)
Integration of the national registration/identification
3.7.2
Threats:
a) Political risk
b) Competing government priorities
c)
Macro-economic risk –inflation, interest rate, and forex risk
d) Unemployment and under employment
e) Competition from financial institutions and other financing agencies
f)
Migration of loanees to other countries
g) Technological risks
h) Fraud risk – effect on reputation/image
3.8 STAKEHOLDERS ANALYSIS
HELB recognizes the existence of a number of stakeholders with diverse interests and
influence on the conduct of its activities. The major stakeholders identified include
students, staff, government, the industry, development partners, corporates and other
institutions of higher learning, all who will contribute to the performance of the HELB.
The table below outlines the expectations of both the stakeholders and HELB.
To achieve
HELP HELB
recover past loans
20
Table 1.1 Stakeholder analysis
Stakeholder
Stakeholder Expectations
HELB Expectations
•Quality and fast services
delivery Availability of
finances or loans for their
education
•Academic excellence
•Adequate funds for Variety
of academic programmes
Students
•Healthy, safe and
secure service provision
environment
•Discipline
•Compliance with the funds rules
and regulations sanity and order
•Timely education Loan
repayment
•Effective communication
•Defined programmes
schedules and on time
payment
•Sustainability of HELB
•Commitment to HELB goals
•Healthy, safe and secure
working environment
•Meritocracy
•Security of tenure and
defined career progression
•Training and development
opportunities
•Loyalty and sustainable service
•Quality Customer service
•Adherence to core values
Staff
•Welfare services
•Equity
•Adequate remuneration
structure
21
•Quality human resource
capacity for National
development
•Proper utilization and
accounting of government
contributions
Government
•Quality services
•Financial products
innovation
Financiers
and
Partners
•Efficient use of donations
and grants
•Funded project outputs
accountability
•Regular and adequate funding
•Development of policies that
contribute positively to the
governance of the institutions
•Enabling working environment
•Peace and stability
•Sound Macroeconomic policies
•Stewardship
•Mutual benefits
•Sustained funding
•Professionalism & integrity
in fund management
•Sustainability
Universities
and Colleges
•Quality graduates
•Sustainable partnerships
•Adequate financial support
for students
•Collaboration
•Financial Solutions
to development and
operational problems.
•Effective policies
Competitors
Civil Society
22
•Effective communication
•Support in policy
implementation
•Responsibility & Accountability
•Fair competition for
potential finances
•Fair
competition
potential funds
•Good Corporate Social
responsibility
•Cooperation
for
HELB as an institution strongly believes that the stakeholders identified are critical to the
realization of its vision. The Board will carry out stakeholder analysis on a continuous basis
in order to identify changing needs to ensure cooperation and support in the achievement
of its Mission and realization of its Vision. In order to address the issues presented by
internal and external environment, HELB will put in place risk mitigating strategies to
ensure that these issues do not hinder the Board from achieving its goals.
To achieve
HELP
HELB
recover past loans
23
4.0 CHAPTER FOUR: 2013-2018 STRATEGY MAP AND PILLARS
I
n this strategic Plan 2013 -2018, HELB will strive to fulfill its mandate by focusing on four
(4) major pillars. The Pillars and KRAs will be the performance driving forces which the
Board seeks to deploy to achieve its Mission and Vision, and deliver value to customers.
The pillars are:
•
•
•
•
Financial Sustainability
Customer Service delivery
Internal Processes re-engineering
Institutional Capacity and Corporate Governance
4.1 STRATEGY ROAD MAP
In implementing this strategic plan, the Board, Management and staff will heavily rely on a
comprehensive Strategic map supported by detailed Key Results Areas (KRAs) in an effort
for HELB to achieve its mandate, Vision and Mission. The Strategy map captures the Board
and Management visualization of the strategy clearly to ease communication to staff and
stakeholders. Composed of two columns of Pillars and KRAs, the matrix is composed of
clear rows which elaborate the individual KRAs that the Board will pursue to realize this
strategic plan
Here below is the strategy map that will guide the implementation of the Strategic Plan
“Education is the strongest and the most lethal
weapon in reducing the gap between the rich and
the poor” – Nelson Mandela
24
Strategy Map Framework
Resource Mobilization
Financial
Sustainability
Revolvability
Alternative
Sustainability
Cost Efficiency
Customer
Service
Product /
Quality
Price /
Affordability
Placement /
Availability
Promotional
Decentralization
Internal Processes
Re-engineering
Customer
Relationship
Management
Automation /
Innovation
Standard
and
Innovations
Efficiency
Institutional
Capacity and
Corporate
Governance
Corporate
Governance
Enterprise
Risk
Management
Pillars
Performance
Management
Framework
Human
Capital
Organizational
Capital
Key Results Areas (KRAs)
Figure 2- Strategy map framework indicating the Pillars & KRA’s
4.2 THE PILLARS AND THEIR IMPLEMENTATION MATRIX
This section explains in details each pillar and how it will be implemented by providing the
various Strategic initiatives, activities, key performance indicators, accountable person,
timelines and budget requirement.
4.2.1
Financial Sustainability pillar
A
strong financial base is important for HELB in providing adequate financing to all
Kenyans who are enrolled in institutions of higher learning. As economic pressures
continue to push up inflation rates, the cost of living increases, this calls for the HELB
to continuously revise its allocations to students who apply for its financing. However,
this can only be achieved if the Board has a strong financial base and the capacity to
raise additional funds to meet the budget requirements. The unpredictability of national
budget allocation underpins the need for the Board to look for alternative sources of
25
financing to fulfill its mandate. In strengthening financial sustainability, the Board will
have to effectively manage its main asset base which stands at Kshs.33.5 billion as at June
2013. If well managed this strong financial base presents the Board with an opportunity to
provide future financing for higher education. However, the quality of this portfolio is an
issue which needs to be addressed urgently. It is estimated that about 39% of the portfolio
is not performing and continue to accumulate, which will put the Board’s operations at
risk.
To ensure that HELB operate as a Development Financing Institution for higher education
financing as recommended by the presidential task force on Parastatal reforms, the board
will commence the transformation process by preparing and seeking the necessary legal
and regulatory framework. This will enable the Board to operate as a financial institution by
ensuring that all higher education financing from all the sources are channeled through its
systems. At the same time the Board is expected to evolve to a deposit taking institutions
as savings by both parents and the students wish to save fund for their future children
education or their own education. The operationalization will be completed by June 2015.
Here below is the implementation matrix for this pillar:
Strategic Objective: To grow the annual student budget portfolio from the current Kshs 5.4 billion in 2012/2013 to Kshs 19.054
billion and to increase the coverage of students with C+ and above from the current 19% to 36% by 2018
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Revolvability
Increase
performing
loan portfolio
from 55% to
70%
Inspection of
employers
Increased
compliance and
recovery levels
LRRM/LSM
Quarterly periodically
5
Establish and
strengthen
collaborations
with Key
Stakeholders
Increased
compliance and
recovery levels
LRRM
5
Create a special
debt collection
unit
Increased
compliance and
recovery levels
LRRM/ICTM
Jun-14
10
26
Budget
(Kshs in
millions)
per year
Key Result Area
Strategic
Initiative
Increase
KCSE C+ and
above student
coverage from
the current
19% to 36% by
2018
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(Kshs in
millions)
per year
Establish special
collection
strategies for
the Diaspora
Community
Increased recovery
levels for diaspora
loans.
LRRM
3
Prosecution
of Defaulting
Employers
Increased
compliance and
recovery levels
LRRM/LSM
2
Engage Debt
collectors
Increased
compliance and
recovery levels
LRRM
Sep-13
Prompt
receipting of loan
recoveries
Receipting of all
loan recoveries
within 48 hrs.
FM
Continuous
Prompt
reconciliation of
loan recoveries
Reconciliation of all
loan recovery bank
accounts within
48hrs
FM
Continuous
Review
Means Testing
Instrument and
other Formulae
Increased number
of beneficiaries
and loan portfolio;
Award loans to all
deserving students
HOO
Annually
Communication
on all products
offered
No. of loan
products available.
Increased uptake of
HELB products
HOO/Corporate
Communication
Continuous
3
Review of
data collection
instruments i.e.
application forms
Accurate profile of
applicants
HOO
Annually
Processing of all
applications
Communication
of application
outcome to all
applicants on
time and %age of
applicants awarded
HOO
Annually
27
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Organizational
Transformation
to become a
Development
Financing
Develop and
secure the
necessary legal
and regulatory
approvals to
Carry out the
necessary
consultancies
to gather
requirements
Consultancy reports
CEO
March 2014
Institution
in Higher
Education
(DFIHE )
facilitate
operations
Prepare the legal
and
regulatory
documents
required
5
June 2014
Legal and
regulatory
documents
CEO/LSM
Seek the
required
approvals of the
regulatory and
legal documents
Set up systems
and the required
Budget
(Kshs in
millions)
per year
5
September
2014
Approved operating
documents
CEO
-
infrastructure
to commence
operations
June 2015
Operationalized DFI
28
CEO
25
Carry out a
feasibility
study on Bond
floatation
Feasibility study report
June 2017
4
Borrow at
subsidized
interest
(Subsidized by
donors)
Borrow at below 8% for on-lending to
post graduate and continuing education
students
June 2015
0.5
Key Result Area
Strategic
Initiative
Ensure
accountability
of disbursed
funds
Increasing
access to funds
for higher
education
Activities
Key Performance
Indicator (KPI)
Target
philanthropic
investors
Accountability
Timeline
Budget
(Kshs in
millions)
per year
Three individuals signing MOUs
annually
Annually
0.5
Establish and
strengthen
collaborations
with key
stakeholders
to fund target
clients
At least three fund management MOUs
from stakeholders
Annually
Invest idle funds
at the most
competitive rates
in the market
At least Kshs. 150 Million interest
income annually
Annually
Monitor
compliance
% compliance and return of unutilized
funds by universities
Continuous
0.5
Public education
on effort on
alternative
funding
Enhanced public Knowledge and
increased uptake of bank subsidized
loans.
Continuous
5
Establish
relations with
strategic partners
in financing of
higher education
Expanded network of strategic partners,
Increased coverage of student funded.
Continuous
0.5
Solicit for funds
from strategic
partners
Increased number of beneficiaries and
loan portfolio
Continuous
1
29
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Sustainability
Create a
sustainable
Revolving
Fund to ensure
continuity and
availability
of funds for
loans
Increased
interest rates
to 8 %
30
Accountability
Timeline
Budget
(Kshs in
millions)
per year
Revised interest rates
Jun 2015
Create a self
-protection loan
scheme
All loans insured; Mitigated risks
Jul-14
Establish and
maintain
membership
with strategic
institutions e.g.
CRB’s and AKCP
Increased compliance and loan recovery
Separate
Alternative Loans
Fund and create
a Revolving
fund available
at competitive
rates
Increased uptake of alternative loans;
effective and efficient accounting for
different loan books
Jun-14
0.5
Use of Direct
sales Rep.
to Market
Alternative loans
Increased uptake of alternative loans
Jul-14
1
Sign MOUs with
universities on
handling of HELB
funds
MOU signed with universities
Mar-14
0.5
Enhanced revolving fund
Jul-14
10
5
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Convert all
grants and
bursaries into
loans
Submit a
proposal to
the ministry
of Education
requesting
that all grants
to universities
be channeled
through HELB
Approval granted
Communicate to
all universities to
make their grants
requests to HELB
based on the
number of needy
students in the
universities
Communication to all universities done
Timeline
Budget
(Kshs in
millions)
per year
June -14
All universities grants channeled through
HELB
July-14
-
July-14
-
Mean Testing Instruments for the
universities requirement approved
Grants channeled through HELB to all
the universities.
Sept-14
Cost efficiency
Lobby all higher
education
financiers to
channel all their
funding through
HELB and sign
a Service level
Agreement
All higher education finances channeled
through HELB
June -14
Maximize
profitability
Value for money
tests
Cost reductions/savings achievedimproved operation efficiency ratio.
Continuous
Reduce cost
of business
operations
through
automation
Implement
ICT based
communication
channels/
solutions
%age of processes automated(level of
automation as per e-government survey)
Continuous
3
Devolve
service through
technology
No. of services devolved
Continuous
17
0.5
31
Key Result Area
4.2.2
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Introduce use
of Smart Card in
disbursement of
funds
Smart card operational
Accountability
Timeline
Jul-14
Budget
(Kshs in
millions)
per year
Customer Service delivery pillar
I
t is recognized that HELB has a centralized office that serves the entire country. Since
the Board is not geographically spread, it uses financial institutions’ extensive network
to provide certain services to its customers such as collection of loan application forms.
While these channels have served the purpose to some extent, there are a number of
challenges that have been witnessed, resulting in complaints from customers. In some
parts of the country and among certain populations, awareness and knowledge about
HELB is quite low. This extends to the functions of the Board and the type of financing
products and services it provides. In order to ensure continuous improvement in customer
satisfaction index, the Board will put in place several measures which will be implemented
and monitored in the next five years. As such customer service will be a key driver during
the plan period through enhancement of delivery channels of HELB products. The Board
will invest in state of art technology to enhance customer service. The Board will during the
planning period pursue a customer centricity strategy through enlargement of customer
contact center and creating ambiance in service delivery channels.
To improve on stakeholders’ relationships, HELB will put in place a stakeholder relationship
department to pursue product deepening, placement and marketing whilst responding
swiftly to customer requirements. The Board will also enhance product development to
formulate realistic product proposals that meet the envisaged customer satisfaction. Here
below is the implementation matrix for this pillar
32
Strategic Objective: To increase customer satisfaction index by 200 basis points annually
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
per year
Product
Information
Enhance the level
and depth of
public awareness
on HELB’s
products and
services
Develop and
implement
publicity
programs
(Including radio,
TV programs and
exhibitions)
No. of radio, TV
programmes; No. of
exhibitions
AM (CC)
Annually
11.6
Carry out
research on the
impact of HELB
products at least
once in a year
One (1) key research
finding presented
to the Board and
recommendations
adopted for
implementation
HORSP
Annually
1
Carry out overall
customer
satisfaction
survey once in
a year
One (1) customer
satisfaction survey
carried out and
findings presented to
the management for
adoption.
HORSP
Annually
1
Conduct
financial literacy
programmes
Increased successful
applications and
reduced defective
forms; Increased
loan repayments
through volunteered
remittances
LM & LRRM
Annually
1
Carry out
Outreach
Programs to
secondary
schools, TVET
institutions &
Universities on
financial literacy
in collaboration
with Universities
& Colleges
Placement Board
No.of institutions
reached, No. of
brochures distributed
LM
Annually
1
33
Key Result
Area
Product
Availability
Price/
Affordability
34
Strategic
Initiative
Improve
effectiveness
and efficiency of
service delivery
as per the service
charter timelines
Implement
cost effective
and efficient
communication
strategies
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
per year
Hold consultative
workshops/
conferences for
stakeholders)
and participate in
Corporate Social
Responsibility
events
No. of workshops;
No. of resolutions
implemented; No.
of CSR activities
undertaken.
AM (CC)
Quarterly
11.2
Separate/
segregate
postgraduate and
undergraduate
loans portfolio
Different category
clients handled at
separate levels
LRRM
Jun-14
Develop a
Contact Centre
to deal with
all emails and
telephone calls
% age of customer
complaints sorted out
at the front office
LRRM
Jul-15
10.8
Carry out data
cleanup and
update all
records and
provide accurate
statements in the
Website
Availability of accurate
statement on the
website.
LRRM
Continuous
Facilitate &
enhance sign
laguage training
to customer care
officers
At least two customer
care officers trained
annually
HRAM
Annually
0.5
Redesign the
customer care
area
Conducive
environment for
provision of customer
service
LRRM
Jan-14
15
Automation of
e-statements
Availability of
automated
e-statement
LRRM
Continuous
Automation of
SMS notifications
Level of SMS
notification done.
LRRM
Continuous
Enable use
of banking
e-slips for loan
repayments via
website
Working banking
e-slips for loan
repayment by
employers
ICTM/FM/LRRM
Dec-13
1
5
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
per year
Placement/
Availability
Provide effective,
efficient and
quality services
Re-design the
website to ensure
availability and
efficiency at all
times
User friendly website
ICTM, AMCC
Dec-13
1
Promotion of
products
Provide
information
on products
available
Conduct HELB
clinics - In Kenya
No of clinic conducted
quarterly
LRRM
Continuous
10
Multi skill staff
in customer care
area to undertake
more functions
%age of customer
complaints handled
and finalized at the
front office
HRAM
Annually
2
Conduct HELB
clinics - Diaspora
No. of diaspora clinic
held and increased
diaspora loan recovery.
LRRM
Annually
5
Reduced customer
complaints
Distribution
Channels
Provision of
alternative
repayment
modes
Establish
partnerships
with Industry
players to
provide a variety
of repayment
modes locally and
in the Diaspora
No. of new repayment
channels introduced
annually
LRRM
Continuous
Market
Intelligence
Fostering
strategic
relationships with
stakeholders and
partners
Carry out one
benchmarking /
exchange activity
every year
Benchmarking and
implementation report
ICTM
2014/15 &
then every
two years
5
Information
sharing with
relevant
stakeholders
No of stakeholders /
information shared
with
ICTM
Continuous
2
Carry out one
collaborative
project
with similar
institutions
No of collaboration
and lessons learnt and
implemented
ICTM
Every two
years
1.5
Conduct
customer
satisfaction
survey
Customer satisfaction
survey report
HOSRP
Annually
1
Enhanced
effective, efficient
and quality
services
35
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
per year
Customer
Relationship
Management
Enhance
quality services
delivery and
communication
for clients
Implementation
of Smartcard,
online payment
channels
Working payment
solution, smart card
operationalized
ICTM/LM/HOF
June 2014
Carry out a survey Survey Report
on adherence
to the Service
Charter
AM (CC)
Annually
0.6
Timely response
to customer
feedback
Report of customer
feedback analysis
[including Certificate of
Customer Complaints
Resolution from the
Ombudsman]
AM (CC)
Annually
Increase
collaboration
with banks
number of MOU
signed with the banks
HOF
Continuous
Conduct publicity
programs for
stakeholders
No of publicity
programmes
conducted annually
AM (CC)
Quarterly
2.5
Automate
generation of
zero balance
accounts for
preparation of
stop-orders
Automated stop order
system operational
ICTM
4th Qtr.
2013/14
Provide real
time updated
statements on
the website
Accurate and up to
date e-statement on
the website
ICTM
Continuous
Provision of
Alternative loans
within 24 hrs. on
application
Time take to process
alternative loan
application
ICTM/LRRM/
HOO
Continuous
Reduce refund
processing time
No of days taken to
process a refund.
FM/LRRM
Continuous
Develop
interactive online
customer services
Online customer
service operational
ICTM
June 2014
To strengthen
relationship with
stakeholders
Provision of
quality customer
services and
retention
36
Key Result
Area
4.2.3
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
per year
Timely resolution
of customer
complaints
Quarterly reports on
customer complaints
resolution (including
receipt of Certificate
on Customer
Complaints from the
Ombudsman)
AM (CC)
Quarterly
Internal Processes Re-engineering Pillar
I
nformation and Communication Technology continue to play an important role in
facilitating business processes at HELB. The process of capturing, maintaining and availing
credible information that supports other units of the organization for decision making
purposes has been identified as a key performance enabler that should be addressed.
Given rapidly evolving technological advancements in the market place today, HELB will
ensure that ICT applications remain up to date for both hardware and software, and the
skills of its staff members. Following the publicity drive and national policy provision that is
expected to increase the demand for HELB products and put pressure in its service delivery,
internal processes will be comprehensively reviewed in order to enhance efficiency and
effectiveness through Business processes re-engineering. As the web that connects all
parts of the organization, business processes and procedures are a key catalyst for overall
organizational success but can also be an ingredient for failure if not properly interlinked.
The Board will therefore ensure that its operations adequately support its core functions of
loans disbursement and recovery. A comprehensive digitization and automation strategy
will be prepared and implemented during the plan period. The Board will modernize the
ICT infrastructure to enhance system reliability through minimal downtime. The Board
will focus on implementing an appropriate technology to support the broad services
prioritized to enhance customer service and growth. Services through digital platforms
like e-Kiosks will be pursued effectively during this planning cycle.
With appropriate technology in place, product innovation and development will be
achieved with ease. The Board will also heavily rely on technology to distribute products
and services including loan collection to maximize efficiency and cost effectiveness.
37
Here below is the implementation matrix for this pillar
Strategic Objective: To increase the efficiency and effectiveness of Business operations
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
Automation/
Innovation/
Digitization
Enhance
business
process
automation,
integration
and adoption
Procurement and
implementation
of an Enterprise
Resource Planning
(ERP) system
Efficient / effective ERP
ICTM
4th Qtr.
2013/14
150
Redesign and
enhancement of
HELB website
Reliable user friendly
website
ICTM/LRRM
1th Qtr.
2013/14
1.2
Enhancement
and integration of
online application
Integrated Online
application
ICTM/LRRM
Continuous
Implement intranet
working intranet
ICTM
4th Qtr.
2013/14
Automate loan
recoveries
receipting
processes and
provision of
services including
e-statement, SMS
notifications,
update of loanee
ledgers
Receipting for all
collection accounts
automated-statement
available on the
website, No. of SMS
notifications done and
all ledgers up to date.
FM
Oct-13
0.5
Introduce use
of smart card in
disbursement of
funds
Smart card operational
in disbursement of
funds
HOO,HOF
Jul-14
5
Automation of all
lending processes
No. of lending processes
automated
LM,ICTM
Jul-15
20
Barcoding of Fixed
Assets
All fixed assets
barcoded
FM
Jan-14
3
Document
% of digitalized records;
ICTM
4th Qtr.
10
digitalization and
implementation
of an Electronic
Document
Management
(e-DMS) system
efficient e-DMS system
Increased
electronic
engagement
and improved
service
delivery for
clients
38
2014/15
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget
(in Kshs
Millions)
Standards and
Innovations
Harnessed
innovative
technology
Enhanced client
self-service
solutions (Kiosk
models, electronic
clearance, selfcredit evaluation,
direct upload by
client institutions)
Functional and effective
Kiosk, electronic
clearance, selfcredit
evaluation
ICTM
4th Qtr.
2013/14
0.5
Implement online
application process
with instant
response
Online application
process available with
instant response
ICTM
4th Qtr.
2013/14
Data center
upgrade and
enhancement
(Server, Storage,
Power back up,
Suppression
system)
Modernized functional
data center and reliable
systems and reduced
downtime.
ICTM
4th Qtr.
2014/15
Put in place a
Disaster Recovery
Centre (DRC)
Over 95 % systems
availability
ICTM
4th Qtr.
2015/16
Ensure Web
redundancy and
load balancing
Over 95 % systems
availability
ICTM
4th Qtr.
2014/15
0.6
Implement Online
backup
On line Backup
operational and restore
reports available
ICTM
4th Qtr.
2012/13
Enhanced digital
communication
from corporate
communication to
improve efficiency
and timeliness
No. of digital
communication done
annually
AMCC
Continuous
Enhancement
and optimization
Over 95 % systems
availability
ICTM
Continuous
Adherence to service
charter
LM
Jul-15
Efficiency
Modernize ICT
Infrastructure
and enhance
systems
availability
of Network
management
system
Real time
processing of
applications
39
Key Result
Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Service Level
Agreements
Enhance
quality service
delivery
Development &
implementation of
inter-departmental
service level
agreements
No. of SLAs developed
and signed; % reduction
in cycle time
All Managers
4th Quarter
2013/2014
Review all
departmental
procedures & ISO
manual
Approved and
operational manuals
All managers
June 2015
3
4.2.4
Budget
(in Kshs
Millions)
Institutional Capacity and Corporate Governance
S
trong Corporate Governance is required to guide the organization in the right direction
and steer it to success. In addition, the Board recognizes that having the right people
with the right motivation in the right positions is fundamental to successful delivery of its
mandate. It is therefore a priority of the Board to address institutional capacity in terms of
Corporate Governance, human resource capacity and work environment in the planning
period. In addition, the Board will have to build capacity in other areas like Legal and
Regulatory Framework and Enterprise Risk Management, which are key to its success.
The key objectives include improving ICT Governance, developing appropriate governance
and leadership structures, improving Corporate Performance Management systems and
building capacity in Human Capital and enhance provision of legal services. Institutional
reforms and reorganization will be implemented to ensure the right people are engaged in
the right job at a competitive price. Therefore organizational redesign and job evaluation
will be implemented to build internal capacity to support the planned growth areas
while enhancing controls across the organization. The Board will pursue the right reward
system through a comprehensive Performance Management Framework to ensure high
performing teams and individuals are rewarded and retained.
A comprehensive Enterprise Risk Management system will be implemented during the
plan period to ensure that the Board has the capacity to manage current risk exposure
in an optimal manner. To effectively enhance compliance to support loan recovery
and deepen alternative funding, HELB Act will be reviewed to support the key strategy
of Revolvability of the funds while increasing compliance of the Constitution of Kenya
Chapter six on integrity. The Board of Directors will continuously build a strong corporate
40
governance platform through guidance to management, appraisal and increased visibility
on corporate governance issues. Here below is the implementation matrix for this pillar.
Strategic Objective: To establish and maintain an effective Institutional capacity
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget (in
Kshs millions)
per year
Corporate
Governance
Strengthening
ICT
Governance,
Risk and
Compliance
Review of
recovery strategy
Effective recovery
strategy,
increased loan
recovery
LRRM
Annually
5
Review,
Adoption &
Implementation
of Credit policy
Implemented and
operationalized
Credit policy
LRRM
Jan-14
Establish an ICT
Board Committee
ICT board
committee
established with
ToR
ICTM
4th Qtr.
2013/14
Review ICT
strategy
Reviewed and
approved 201318 ICT strategic
plan
ICTM
1st Qtr.
2013/14
Review and
operationalize ICT
policy
Approved 2013
ICT Policy
ICTM
1st Qtr.
2013/14
and 1st Qtr.
2015/16
Adopt &
Implement
ISO, COBIT, ITIL
and Project
management
Implemented and
operationalized
standards
All managers
Continuous
0.5
Licenses renewal
Compliance in
licensing
ICTM
Continuous
Implement audit
findings
Audit follow up
report
ICTM
Continuous
Undertake
Penetration Test
and implement
results
PEN Test report
ICTM
4th Qtr.
2013/14 and
16/17
0.5
Comply with the
legal & regulatory
framework
100% compliance
LSM
Continuous
41
Key Result Area
Enterprise Risk
Management
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget (in
Kshs millions)
per year
Build corporate
governance
capacity for
Board of
Directors
and Senior
Management
Carry out
the Board
performance
appraisal
Board
performance
report
CEO/LSM
Annually
Identify training
needs, train and
evaluate
Training Needs
Assessment
(TNA) Report
and Report on
training impact
CEO/LSM
Annually
5
Conduct
corporate
governance audit
using a consultant
Audit Report on
Governance
CEO/LSM
March 2014,
once on
every two
years
3
Carry out
publicity
to enhance
corporate
visibility reflecting
good corporate
governance
Level of
knowledge on
HELB products
and services.
AMCC
Continuous
3
Carry out Board
level policy gap
analysis and
improve the
policies
Approved
Policies
CEO/LSM
Q3 of
2013/14 and
15/16
Train Board of
Directors on ERM
Training
conducted
IAM/HRM
Q2 of
2013/14
0.8
IAM/HRM
Q2 of
2013/14
0.7
CEO/ IAM
Q2 of
2013/14
Build capacity
on ERM
Train Senior
Management
Establish Risk
Management
Committee (RMC)
42
RMC in place with
clearly defined
TORs
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget (in
Kshs millions)
per year
Formulate,
implement and
monitor ERM
framework
Procure a
consultant for
implementation
of ERM
Consultant
procured
AMPROC
Q4 of
2013/14
5
Train Risk
champions
Training
conducted
IAM/ HRM
Q4 of
2013/14
Develop an ERM
policy framework
ERM policy
framework
approved by the
Board
IAM
Q1 of
2014/15
Train Internal
Auditors on Risk
based Internal
Auditing
Training
conducted
IAM
Q3 of
2013/14
Have risk
registers for each
function/ unit.
Up to date
Risk registers
maintained
IAM/ Dept.
Heads
Continuous
from April
2014
Recruit a Risk
Manager
Risk Manager
recruited
HRM
Q1 of
2014/15
20
Recruit a risk
management
staff
Risk officers
recruited
HRM
Q2 of
2014/15
10
Automate risk
management
processes
System procured,
training
completed and
system in use
Risk Manager/
ICTM
Q2 of
2014/15
2.5
Set risk appetite
for the Board
core functions
Risk appetite
statement
approved by the
board
RMC/CEO
Q1 of
2014/15
2.5
Develop a
framework
to focus on
specific risks
(Operational,
financial, credit,
legal etc.)
Frameworks
approved by the
Board
Risk Manager
Q2 of
2014/15
1.5
43
Key Result Area
Performance
Management
Framework
44
Strategic
Initiative
Enhancement
of corporate
performance
through
strategic
awareness and
alignment
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget (in
Kshs millions)
per year
Update
management on
risk management
status
Monthly reports
Risk Manager
Continuous
from July
2014
Perform risk
based audits in
line with risk
based internal
audit work plan
Quarterly reports
to management
and the Board
ARC
IAM
Continuous
from July
2014
Update the
Board on risk
management
initiatives
Quarterly reports
to Board ARC and
summaries to full
Board
IAM/ Risk
Manager
Continuous
from July
2014
Implement
Balanced Score
Card
Implementation
reports; % of staff
with objectives
tied to BSC
HORSP
June 2014
5
Create awareness
to staff on HELB’s
strategy
No. of staff who
can identify the
organization’s
strategic priorities
HORSP
Jun-14
Align strategic
efforts through
measurement
and reward
% of employees
(Senior
Management)
with goals
mapped to
strategy
HORSP
Jun-14
Train employees
in line with BSC
% of staff with
training and
development
linked to BSC
HORSP
Jun-14
2
Cascade
performance
Management
principles to all
cadre of staff
% of staff
knowledgeable
on performance
management
HRAM
Annually
from July
2014
Automate BSC
Installed BSC
system
HORSP
Jun-16
5
Key Result Area
Strategic
Initiative
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Capacity in
Human Capital
Attain
competent,
motivated and
innovative staff
Identify and
implement staff
training programs
No. of staff
trained per year
HRAM
Continuous
20
Performance
monitoring and
evaluation
No of
performance
evaluation done
and reports
HRAM
Quarterly
Undertake
mentorship
programmes
No. of staff under
mentorship
programme
HRAM
Annually
Increase
optimization
and utilization
of ICT systems,
solutions and
products; e.g.
virtualization.
Increase user
involvement in
ICT projects
No of users
involved per
project
ICTM
Continuous
Conduct user
trainings and
awareness
programs
No of trainings
and users trained
ICTM
Continuous
Attract,
Develop and
Retain high
performing
workforce
Develop
attractive
remuneration
packages.
Approved HR
policy being
implemented
HRM
Continuous
Identify any skills
gap in functional
areas
Reports of
identified gap and
JD prepared and
submitted to HR.
HRAM
Q1 of each
year
Develop
performance
based packages.
Approved
HR policy on
performance
management
HRAM
Annually
Review the
organization
structure
Revised
Organization
structure
BS/HRAM
Q3 of
2013/14
2
Develop positive
organization
culture
One change
management
training for all
level of staff.
HRAM
Annually
1.2
Organizational
Capital
Develop HR
procedures
that
drive the
Business
Budget (in
Kshs millions)
per year
45
Key Result Area
Strategic
Initiative
Enhance
provision of
legal services
46
Activities
Key Performance
Indicator (KPI)
Accountability
Timeline
Budget (in
Kshs millions)
per year
Develop and
implement HR
Policies.
HR polices
prepared,
approved and
implemented
HRAM
Q2 of
2013/14 and
continuous
Encourage
autonomy over
tasks
Decisions
are made at
functional level.
Empowered
employees. Selfmanaging team
HRAM and
functional
heads
continuous
Carryout external
legal audit
legal audit Report
LSM
June 2014,
and every
two years
4
Develop Legal
strategy, obtain
approval and
implement
Approved legal
strategy being
implemented
LSM
Dec. 2013
Develop Legal
Policy, obtain
approval and
implement
Approved Legal
Policy being
implemented
LSM
Dec.2013
Monitor
compliance
to legal and
regulatory
framework
100% Compliance
LSM
Quarterly
Provision of legal
advisory services
Legal Advisory
report
LSM
Qtr. 2 of
2013/14 and
Continuous
as required
0.5
Develop and
implement
contract
management
policy
Contract
management
policy approved
and being
implemented
LSM
Q3 of
2013/14 and
Continuous
Identify relevant
laws and
regulations and
propose reviews
Proposed
amendments
and regulations
approved, HELB
Act reviewed
LSM
June
2014 and
continuous
as required
2
5.0 CHAPTER FIVE :
IMPLEMENTATION OF THE STRATEGIC PLAN
5.1 IMPLEMENTATION PLAN
D
etailed implementation plan matrix has been included in the analysis of the various
pillars. The implementation plan will be devolved into annual operational plans
which constitute departmental annual work plans. These will in turn form the basis of
the Individual annual work plans. This cascading process creates a clear line of oversight
between the individual’s work performance and the accomplishment of the Board’s
objectives.
5.2 COORDINATION MECHANISM
The implementation process of this Strategic Plan will be well coordinated in order to
achieve the planned strategic goals. The Plan will be achieved through meetings and
reporting systems of various management and administrative organs of HELB including
the Board Committees, the Senior Management team and other operational units in the
organizational structure. The implementation plan (action plan) clearly shows what will be
done and who will be responsible.
5.3 ACCOUNTABILITY
Accountability is the expectation that each employee will accept credit or blame
for results achieved in performing the assigned tasks. Employees are expected to report
results of their work to enable management to determine whether effective decisions
are being made and whether tasks are being performed as planned. Accountability
always flows from the bottom upwards.
The implementation of this Strategic Plan requires proper utilization of financial, human
and material resources. This demands that the staff take respective responsibilities and
be accountable for the same. Successful implementation of the plan depends significantly
on how the planned activities are effectively delegated, and outputs monitored and
evaluated. The Board will be responsible for the general monitoring and evaluation of the
Plan’s implementation and prioritization of the projects to be undertaken. The Chief
Executive Officer(CEO) and Heads of Departments will, on the other hand, be responsible
for the day-to-day implementation, monitoring, and evaluation of the organization’s
operations.
47
6.0 CHAPTER SIX:
RISK MANAGEMENT
6.1
RISK MATRIX
A
s indicated in the various parts of this Plan, there are several potential risks to the
implementation of this Plan, including timely availability of resources. All these will
be assessed and measures put in place to mitigate likely risk. The risk management plan
will be continuously evaluated in order to take necessary remedial action. The table below
identifies some of the risks and the mitigation measures that will be undertaken.
Strategic Plan Implementing Risks which may influence overall achievements.
Type of risk
Risk Rating
Mitigation
1
Economic
Good planning and control of operations
2.
Political
Put in place good governance structure and avoid external
influences
3.
Legal
Adopt and adjust the legal environmental changes
4.
Financial
Planning, Performance monitoring and improving Internal
controls
5.
Technological
Keep abreast with the changing technology. Be proactive.
6.
Innovation
Research and development and market intelligence
7.
Planning
Following laid down regulations
8.
Operational
Put in place internal controls, Business Continuity Planning,
Outsourcing and Risk transfer through Insurance
9.
Employee
engagement
Capacity building and Development
10.
Partnering
Relationship Management, Control and monitoring
11.
Customer
Service delivery, open communication channels,market
orientation
Key
48
High Risk
Medium Risk
Low Risk
6.2 AVAILABILITY
Resources are essential for the implementation of this Plan. Inadequate financial, human,
and other material resources may negatively impact the implementation of the
planned activities. For instance shortage and/or a high staff turnover in HELB may lead to
inability to implement the Plan. The Board and Management team will have to plan and
come up with staff retention strategy.
6.3 RESPONSIVENESS AND COOPERATION OF STAKEHOLDERS
Different strategies and activities in this Plan require cooperation of various stakeholders.
Their positive response is therefore crucial to the implementation of the Plan. Participation
in consultative meetings among other interventions will be used to mitigate the risks.
6.4 INFORMATION FLOW
Lack of effective and efficient flow of information may result in delay in decision-making
which in turn leads to delays in the implementation of the Plan. The information flow may
be between the Management team and Customers and other key stakeholders that are
crucial to the successful implementation of this Plan. HELB Board will enhance the flow
of information through implementation of an effective information management system.
HELB bridges the gap
between the rich and
the poor through
education
49
7.0 CHAPTER SEVEN:
MONITORING AND EVALUATION
7.1
MONITORING METHODOLOGY
T
he success of the Strategic Plan implementation depends on how the planned
activities and output are effectively monitored and evaluated. It is therefore important
to put in place a strong monitoring and evaluation framework to track the implementation
of the Strategic Plan within the planned period. This will provide for continuous
monitoring and evaluation of all strategies, activities and outcomes with a view to
advising the management on any remedial action required. Monitoring will be based on the
Key Performance Indicators. The means for verification will be the instruments adopted to
establish whether the planned activities and strategies are on course.
The evaluation of the results and strategies will be an on-going process involving
redesigning and restructuring the activities. Consultation with implementing department
and realigning strategies, resource outlay, objectives, activities and other support
procedures and processes will be key requirements on the monitoring. Preparation of
periodic reports for each department will also be done.
7.2 MONITORING AND EVALUATION (M & E) FRAMEWORK
The following M & E framework will be put in place by the Board in order to ensure
implementation of the Strategic Plan:
(i)
The Strategic Plan will be broken into annual objectives, work plans and budgets
which will be presented for approval by the Board of Directors.
(ii)
The Corporate objectives will be cascaded down to individual departments for
implementation. The Heads of Departments shall oversee the implementation
of the Strategic Plan in their respective departments.
(iii)
The M & E implementation committee will be reporting quarterly to the
Board on the progress of the Strategic Plan implementation.
(iv)
All Heads of Departments will hold quarterly meetings chaired by the CEO to
review the status of the Strategic Plan implementation as it relates to their
respective departments.
(v)
The management team shall conduct a mid-term review of the Strategic Plan
50
after two and half years of initiation to determine whether implementation is
on track and give necessary recommendations.
(vi)
The key performance indicators will provide guidance on a more objective
review of the progress made in the Strategic Plan implementation.
7.3 LINKING M&E AND ANNUAL PERFORMANCE
The Corporate objectives will be translated into departmental targets. The latter will in
turn be translated into Individual Performance Targets. That is, the actual performance of
various administrative levels will be monitored continuously and evaluated at the end of
the defined period against the agreed targets.
7.4 PROGRESS REPORTS
Progress reports will be prepared on quarterly basis by the implementing departments.
The reports will describe actions undertaken towards achieving specific strategies of the
Plan and will include costs, benefits, performance measures and progress to date.
The Strategic Plan will be evaluated on quarterly basis, at the mid-term and at the end of
the plan period to ensure that it remains relevant, feasible and delivers outputs that
contribute to sustainable development.
To achieve
HELP HELB
recover past loans
51
8.0 ANNEXES
Annex 1- Budget forecast for the next five years
ACCT
NO.
ACCOUNT
DESCRIPTION
APPROVED
BUDGET
2013/2014
PROPOSED
BUDGET
2014/2015
PROPOSED
BUDGET
2015/2016
PROPOSED
BUDGET
2016/2017
PROPOSED
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
A
SOURCES OF FINANCE
6000
G.O.K CAPITATION
OPERATIONS
183,055,500
201,361,050
221,497,155
243,646,871
268,011,558
LOANS FOR STUDENTS
2,365,000,000
4,442,794,400
6,438,053,365
8,588,041,286
13,869,257,275
BURSARY - GOVT
SPONSORED
92,000,000
101,200,000
111,320,000
122,452,000
134,697,200
BURSARY - TVET
100,000,000
110,000,000
121,000,000
133,100,000
146,410,000
1250
LOAN RECOVERY
3,500,000,000
4,025,000,000
4,628,750,000
5,323,062,500
6,121,521,875
6150
INTEREST FROM
INVESTMENT
60,000,000
66,000,000
72,600,000
79,860,000
87,846,000
6,300,055,500
8,946,355,450
11,593,220,520
14,490,162,657
20,627,743,908
MISCELLANEOUS
RECEIPTS
RESOURCE
MOBILIZATION FUNDS
200,000,000
500,000,000
700,000,000
1,000,000,000
6100
INTEREST FROM STAFF
LOANS
1,100,000
1,210,000
1,331,000
1,464,100
1,610,510
6300
TENDER FORMS
195,000
214,500
235,950
259,545
285,500
6305
LOAN FORMS
5,160,000
5,676,000
6,243,600
6,867,960
7,554,756
6310
SCHOLARSHIP FORMS
900,000
990,000
1,089,000
1,197,900
1,317,690
52
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
6315
BOARDED STORES
2,000,000
2,200,000
2,420,000
2,662,000
2,928,200
6320
PENALTIES
4,000,000
4,400,000
4,840,000
5,324,000
5,856,400
6345
ADVERTISEMENTS WEBSITE
840,000
924,000
1,016,400
1,118,040
1,229,844
TOTAL
MISCELLANEOUS
RECEIPTS
14,195,000
215,614,500
517,175,950
88,893,545
1,020,782,900
TOTAL FINANCES
6,314,250,500
9,161,969,950
12,110,396,470
14,579,056,202
21,648,526,807
B
STUDENTS LOAN
SCHEME
7250
UNIVERSITY
STUDENTS BURSARIES
192,000,000
211,200,000
232,320,000
255,552,000
281,107,200
1250
LOAN TO STUDENTS
6,944,609,943
7,744,861,780
10,279,252,980
13,052,877,969
19,054,767,551
7260
SCHOLARSHIPS
21,420,000
23,562,000
25,918,200
28,510,020
31,361,022
SUB - TOTAL (D)
10,537,491,180
13,336,939,989
19,367,235,773
C
STAFF EXPENSES
7001
BASIC SALARY
170,018,534
187,020,387
205,722,426
226,294,668
248,924,135
7004
HOUSING BENEFIT
87,000,000
95,700,000
105,270,000
115,797,000
127,376,700
7008
OVERTIME
ALLOWANCE
600,000
660,000
726,000
798,600
878,460
7012
ENTERTAINMENT
ALLOWANCE
4,902,000
5,392,200
5,931,420
6,524,562
7,177,018
7016
FUEL AND
COMMUTER
ALLOWANCES
51,880,000
57,068,000
62,774,800
69,052,280
75,957,508
7,158,029,943
7,979,623,780
53
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
7020
SECURITY ALLOWANCE
3,060,000
3,366,000
3,702,600
4,072,860
4,480,146
7024
RESPONSIBILITY
ALLOWANCE
5,877,600
6,465,360
7,111,896
7,823,086
8,605,394
7028
ACTING ALLOWANCE
295,000
324,500
356,950
392,645
431,910
7036
SPECIAL DUTY
ALLOWANCE
364,000
400,400
440,440
484,484
532,932
7040
DOMESTIC
ALLOWANCE
731,520
804,672
885,139
973,653
1,071,018
7044
GRATUITY &
PENSIONS
33,829,017
37,211,918
40,933,110
45,026,421
49,529,063
7048
PASSAGE AND LEAVE
EXPENSES
3,694,000
4,063,400
4,469,740
4,916,714
5,408,385
7052
STAFF HONORARIA
(BONUS)
13,531,424
14,884,566
16,373,023
18,010,325
19,811,357
7056
STAFF WELFARE
EXPENSES
4,180,000
4,598,000
5,057,800
5,563,580
6,119,938
7064
MEDICAL EXPENSES
18,700,000
20,570,000
22,627,000
24,889,700
27,378,670
7076
PERFORMANCE
CONTRACT DYNAMICS
1,390,000
1,529,000
1,681,900
1,850,090
2,035,099
7088
STAFF UTILITY
EXPENSES
1,836,000
2,019,600
2,221,560
2,443,716
2,688,088
7094
CONTRACTED STAFF
WAGES
6,584,400
7,242,840
7,967,124
8,763,836
9,640,220
SUB - TOTAL (B)
408,473,494
449,320,843
494,252,928
543,678,220
598,046,042
D
OTHER OPERATING
EXPENSES
54
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
7115
TELEPHONE EXPENSE LAND LINES
4,000,000
4,400,000
4,840,000
5,324,000
5,856,400
7116
TELEPHONE EXPENSE CELL PHONES
2,456,000
2,701,600
2,971,760
3,268,936
3,595,830
7117
INTERNET EXPENSE
5,652,000
6,217,200
6,838,920
7,522,812
8,275,093
7118
POSTAL AND
TELEGRAM
6,562,000
7,218,200
7,940,020
8,734,022
9,607,424
13,525,000
14,877,500
16,365,250
18,001,775
19,801,953
7125
EXTERNAL TRAVELING
EXPENSE
7126
INTERNAL TRAVELING/
TRANSPORT HIRE
2,621,000
2,883,100
3,171,410
3,488,551
3,837,406
7129
FUEL CONSUMPTION
2,400,000
2,640,000
2,904,000
3,194,400
3,513,840
7135
OFFICE RENT AND
RATES
32,365,710
35,602,281
39,162,509
43,078,759
47,386,635
7136
PARKING RENTAL
CHARGES
1,966,800
2,163,480
2,379,828
2,617,811
2,879,592
7140
INSURANCE - MOTOR
VEHICLE
1,383,250
1,521,575
1,673,733
1,841,106
2,025,216
7141
INSURANCE - GROUP
STAFF
2,750,000
3,025,000
3,327,500
3,660,250
4,026,275
7142
INSURANCE - FIXED
ASSETS
275,000
302,500
332,750
366,025
402,628
7145
STAFF TRAINING
EXPENSE
20,000,000
22,000,000
24,200,000
26,620,000
29,282,000
7146
SEMINARS &
CONFERENCES
18,480,000
20,328,000
22,360,800
24,596,880
27,056,568
7150
REPAIR & MAINT.EQUIPMENT
872,500
959,750
1,055,725
1,161,298
1,277,427
7151
REPAIR & MAINT.FURN., FIX & FITT.
350,000
385,000
423,500
465,850
512,435
7152
REPAIR & MAINT.MOTOR VEHICLES
1,500,000
1,650,000
1,815,000
1,996,500
2,196,150
55
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
7153
REPAIR & MAINT.OFFICE PREMISES
7155
300,000
330,000
363,000
399,300
439,230
COMPUTER &
SOFTWARE MAINT.
8,194,480
9,013,928
9,915,321
10,906,853
1,997,538
7161
OFFICE CLEANING &
MAINTENANCE
1,000,085
1,100,094
1,210,103
1,331,113
1,464,224
7163
SECURITY EXPENSES
3,529,984
3,882,982
4,271,280
4,698,408
5,168,249
7164
OFFICE TEA
2,034,500
2,237,950
2,461,745
2,707,920
2,978,711
7165
OFFICE FLOWERS &
DECORATION
450,000
495,000
544,500
598,950
658,845
7166
OFFICIAL
ENTERTAINMENT
2,215,000
2,436,500
2,680,150
2,948,165
3,242,982
7167
SUBSISTENCE
ALLOWANCE
10,988,000
12,086,800
13,295,480
14,625,028
16,087,531
7170
AUDIT FEES
1,500,000
1,650,000
1,815,000
1,996,500
2,196,150
7171
LEGAL FEES
5,000,000
5,500,000
6,050,000
6,655,000
7,320,500
7172
CONTRACTED
PROFESSIONAL
SERVICES
42,200,000
46,420,000
51,062,000
56,168,200
61,785,020
7174
RESEARCH & FUND
RAISING EXP.
3,000,000
3,300,000
3,630,000
3,993,000
4,392,300
7175
STAFF UNIFORMS
390,000
429,000
471,900
519,090
570,999
7177
SUBSCRIPTIONS PROF. BODIES
1,448,000
1,592,800
1,752,080
1,927,288
2,120,017
7178
NEWSPAPERS &
PERIODICALS
727,000
799,700
879,670
967,637
1,064,401
7179
LIBRARY EXPENSES
234,000
257,400
283,140
311,454
342,599
7180
ADVERTISING,
PUBLICITY & PRINTING
53,865,000
59,251,500
65,176,650
71,694,315
78,863,747
56
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
7185
STATIONERY
& COMPUTER
ACCESSORIES
7190
CHAIRMAN’S
HONORARIA
7191
BOARD MEMBERS’
EXPENSES
7200
9,439,501
10,383,451
11,421,796
12,563,975
1,392,072
1,531,279
1,684,407
1,852,848
14,434,000
15,877,400
17,465,140
19,211,654
21,132,819
BANK CHARGES
11,199,600
12,319,560
13,551,516
14,906,668
16,397,334
7500
DEVOLUTION COSTS
17,590,000
19,349,000
21,283,900
23,412,290
25,753,519
SUB - TOTAL (C)
307,305,793
338,036,372
371,840,009
409,024,010
449,926,411
TOTAL OPERATIONS
EXPENDITURE (C+D)
715,779,287
787,357,215
866,092,937
952,702,230
1,047,972,453
TOTAL RECURRENT
EXPENDITURE (B+C+D)
7,873,809,230
8,766,980,995
11,403,584,117
14,289,642,219
20,415,208,226
ACCT
NO.
ACCOUNT
DESCRIPTION
PROPOSED
BUDGET
2013/2014
PROPOSED
BUDGET
2014/2015
PROPOSED
BUDGET
2015/2016
PROPOSED
BUDGET
2016/2017
PROPOSED
BUDGET
2017/2018
KSHS.
E
CAPITAL
EXPENDITURE
8,581,364
1,265,520
1001
LAND
1005
BUILDINGS
1010
MOTOR VEHICLES
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
57
ACCT
ACCOUNT
APPROVED
PROPOSED
PROPOSED
PROPOSED
PROPOSED
NO.
DESCRIPTION
BUDGET
2013/2014
BUDGET
2014/2015
BUDGET
2015/2016
BUDGET
2016/2017
BUDGET
2017/2018
KSHS.
KSHS.
KSHS.
KSHS.
KSHS.
1015
OFFICE EQUIPMENT
7,961,000
8,757,100
9,632,810
10,596,091
11,655,700
1020
OFFICE FURNITURE
7,845,000
8,629,500
9,492,450
10,441,695
11,485,865
1025
FITTING & FIXTURES
27,485,000
30,233,500
33,256,850
36,582,535
40,240,789
1030
COMPUTER
EQUIPMENT
32,610,000
35,871,000
39,458,100
43,403,910
47,744,301
137,960,000
15,840,000
17,424,000
19,166,400
21,083,040
223,861,000
109,331,100
119,264,210
130,190,631
142,209,694
1045
COMPUTER
SOFTWARE
SUB - TOTAL (A)
F
STAFF LOANS SCHEME
1300
STAFF CAR LOANS
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
1350
STAFF HOUSE LOAN
60,000,000
80,000,000
60,000,000
60,000,000
60,000,000
SUB - TOTAL (E)
70,000,000
70,000,000
70,000,000
70,000,000
70,000,000
TOTAL EXPENDITURE
(B+C+D+E+F)
8,167,670,230
8,946,312,095
SURPLUS / (DEFICIT)
FOR THE YEAR
-1,867,614,730
43,355
58
11,592,848,327
14,489,832,850
20,627,417,921
372,193
329,806
325,987
59
Annex II –Current Organizational Structure. (New Organizational structure to be inserted on completion
of Organizational Design and Job Evaluation)
To achieve
HELP
HELB
recover past loans

Strategic Plan - Higher Education Loans Board

Transcription

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