Students in universities will have to wait a few more days before applying for HELB loans as minors.
The education ministry has outlined the conditions that must be met before the Higher Education Credit Board Amendment Bill is approved.
If it is adopted, students under the age of 18 may soon be able to obtain Helb loans if the ban is approved.
Nominated MP Gideon Koske submitted a proposal for the approval of loans for university students under the age of 18.
According to the proposed law, whoever receives an education loan from HELB must have a parent or guardian as a co-signer.
During a meeting of the National Assembly Education Committee, Bomachoge-Borabu MP Zadok Ogutu said that once the lending law is amended, the bill could be passed.
Ogutu said lawmakers fully supported the proposed amendment.
“This means that before we can approve this proposal, we have to lay the groundwork for the amendment. This will then provide for the expansion of the space,” Ogutu said.
According to the ministry report, because minors cannot open bank accounts, parents have no assurance that the money will reach the minors.
“The report does not support the amendment until the co-borrower amendment becomes law.”
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It now requires the Board to broaden the definition of debtor while disbursing loans.
Legislators wanted to broaden the definition to include a parent and guardian to allow co-signing.
Kabondo Kasipul MP Eve Obara supported the proposal, saying it would go a long way towards helping students in need.
Obara said this would enable parents to know about the loans requested by their children.
Following an effort by then-Kiharu MP Irungu Kangata, the president vetoed a bill containing a similar proposal in 2015, citing sustainability concerns.
The president refused to sign the bill, claiming it would require massive funding from the national treasury to keep it running.
They also removed provisions that allowed graduates not to work within a year of finishing their studies, exempting them from penalties if they notify the board.
Lawmakers rejected a bill in August that slashed the interest rate on HELB loans to 3% and provided a five-year grace period.
The bill was rejected by the National Assembly Education Committee, which warned that the board would lose $693 million per year.
