DOI: 10.36347/sjahss.2017.v05i08.013

Pages: 884-898

An analysis of the composition of Highher Education Loans Board (HELB) loan recipients by socio-economic status has shown that a paltry 23.6% of the recipients were from the low socio-economic status, an indication that HELB serves mainly students from medium and high socio-economic backgrounds. This suggests that HELB funding perpetuates disparities in higher education - a clear indication that the poor are still under-represented in HELB funding. This revelation demands investigation, hence this paper which seeks to examine the level of equity in higher education loans and bursary allocations among diploma students in national polytechnics in Kenya. The paper is anchored on the findings of a study that was carried out in Eldoret Polytechnic, Kisumu Polytechnic, and Kenya Technical Training Collage (KTTC). The target population comprised 8,202 second year diploma students’ benefiting from higher education loans and bursaries. Proportionate simple random sampling was used to sample 330 loan recipients. Data was collected using a questionnaire and document analysis for loans and bursaries disbursements. Descriptive and inferential data was analyzed using means, percentages, principal component analysis and Gini coefficient, respectively. The Gini coefficient indicated that there was inequitable distribution of HELB loans and bursary among the three national polytechnic students based on their socio-economic status. The study also revealed that there is inequitable distribution of loans and bursaries among the male and female students, while the distribution of both loans and bursary among the polytechnics was equitable. This paper recommends that HELB should develop a system through which they can be able to triangulate the information given by the students and the referees at the point of loan application.