In the most recent drive to encourage repayment, the Higher Education Loan Board (HELB) issued a penalty waiver for all beneficiaries.
Through an official statement issued on Tuesday, March 1, HELB Chief Executive Officer Charles Ringera said it has resolved to offer 100 percent penalty waivers to all borrowers.
Between Tuesday, March 1 and April 30, 2022, the grace period will take effect. This new campaign, according to Ringera, expresses gratitude to the beneficiaries for their efforts to repay their loans despite the tough economic times caused by the pandemic.
The move is also aimed at encouraging borrowers to make lump-sum payments during the grace period.
HELB CEO stressed on the need for the beneficiaries to repay their loans so that other needy students can also get the benefit of the funds.
Ringera reiterated, “It is important for all the beneficiaries to honor their obligation stipulated in the terms and conditions of the loan application so as to empower the dreams of any other needy student.”
In 2013, HELB also announced a penalty waiver, with over 10,000 beneficiaries paying off their loans hitting the ksh1.3 billion mark.
A similar campaign was also launched in 2018 where 9998 borrowers paid Ksh870 million.
With the economy slowly recovering after nearly two years in a coma, HELB is trying to capitalize on the latest campaign to urge more beneficiaries to repay their loans.
In 2020, HELB launched a joint operation with law enforcement to ***** down on loan defaulters. The approach was to enhance compliance, integrity and credit access to other students.
“We are going to partner with our law enforcement agencies to track those who are employed and yet unwilling to be counted as responsible and patriotic citizens honoring their debt,” said Ringera.
Due to insufficient funds from the government, loan defaulters are fined Ksh5,000 per month, with the board encouraging more beneficiaries to repay.
