Nakuru: A German-based organisation is providing funding to cover the tuition fees for 6,000 students enrolled in Technical and Vocational Education Training (TVET) programmes across the country. The initiative that incorporates 3,000 students from the Rift Valley Institute of Business Studies (RVIBS) aims to alleviate financial burdens for students to ensure they can access and complete their education.
According to Kenya News Agency, the funding model is part of a broader effort to support TVET institutions and promote skills development within Kenya. Ms Mutisya affirmed that the funding will prioritize students from vulnerable or low-income backgrounds and those who do not have access to traditional funding sources due to financial constraints or other barriers, ensuring they have access to quality TVET education.
In addition to direct financial assistance, Chancen International will offer financial literacy programmes to help the beneficiaries manage their finances and make informed decisions about their education and future. 'Our commitment to funding TVET students in Kenya aligns with the broader goals of promoting education, skills development, and economic empowerment within the country. By easing the financial strain on students, we are helping to create a more inclusive and accessible education system, fostering opportunities for young people to acquire valuable skills and contribute to the local economy,' stated Ms Mutisya.
She explained that the Income Share Agreements (ISAs) financing model for underserved youth in Kenya will allow TVET students to access education without upfront tuition fees, with repayments based on a percentage of their future income after graduation. 'This model aims to reduce financial barriers to education, particularly for marginalized groups, and foster economic mobility. Chancen uses ISAs, a form of financing where students repay a portion of their future income after graduation, rather than traditional loans with fixed payments,' she explained.
Ms Mutisya spoke in Nakuru when she signed a funding partnership agreement with RVIBS Director Mr John Gitau. The Chancen International Country Director disclosed that once a student completes education and gets into income-generating activities or gets employed, repayments are adjusted based on the beneficiary's income, making the model more flexible and sustainable. 'Our funding is fair and ethical. If a student is not in employment, they are not required to make a repayment. There is no interest charged. Our main interest is to improve the livelihoods of Kenyans,' she pointed out.
The Country Director added, 'Repayments are structured as a percentage of income, ensuring they are manageable and affordable. There's a minimum income threshold to protect basic needs, and repayments are paused if a graduate's income falls below this threshold.' In Africa, Chancen International has a presence in Rwanda, South Africa, Ghana, and Kenya. It targets TVET students aged between 18 to 35 years.
The students who qualify for the funding and eventually get employment sign a contract period of repayment ranging from three to 10 years based on their income volumes. Ms Mutisya indicated that they aim to finance 25,000 TVET students in Kenya by 2029.
RVIBS Director noted that most students, particularly from marginalized groups struggle to pay fees, adding that the funding model by Chancen International will incentivise TVET institutions to offer relevant, high-quality programmes that lead to successful employment. Mr Gitau observed that by linking repayment to income, Income Share Agreements (ISAs) will contribute to community development and economic growth.
He hailed the programme for its focus on diversity and inclusivity, with 71 per cent of targeted beneficiaries coming from low-income households. The Director indicated that the programme aims to empower young people with education, leading to meaningful employment and contributing to economic mobility and community development. 'To be eligible, students need to be Kenyan citizens, over 18, and either final-year students or recent graduates from recognised institutions,' he added.