Kenya: Higher Education Loans Board Announces 100% Waiver of Covid-19 Penalties on Student Loans
NAIROBI – The Higher Education Loans Board (HELB) has announced a 100% waiver of the Covid-19 penalty on student loans.
According to Commission Chief Executive Charles Ringera, the action was due to the slowdown in the country’s economy over the past two years.
“It is important that all recipients honor their obligation as stipulated in the terms and conditions of the loan application in order to make the dreams of another student in need come true,” he said.
He said unemployment and underemployment as well as a difficult environment for loanees to start and run businesses, have affected the repayment of HELB loans.
He indicated that this, combined with insufficient funding from the Treasury [The National Treasury]inadvertently created a funding challenge for students seeking HELB loans.
He observed that due to the prevailing economic situation, the repayment capacity of loan recipients may take some time to stabilize.
HELB has already offered 100% penalty waiver campaigns in 2013 where 10,110 beneficiaries repaid their loans worth Ksh 1.3 billion and in 2018 where 9,998 beneficiaries repaid their loans. worth Ksh 870 million.