Govt announces 100pc waiver on penalties for HELB loan defaulters

Govt announces 100pc waiver on penalties for HELB loan defaulters

NAIROBI, Kenya, May 3 – Education Cabinet Secretary Amina Mohamed has announced a 100 percent waiver on Higher Education Loans Board penalties.

Speaking during a breakfast meeting Thursday morning, Amina however said the waiver is only applicable until the end of next month.

“As an incentive to all past HELB loan beneficiaries, I hereby grant a 100% penalty waiver to all defaulters who will repay their loans in one lump sum between today (3rd May, 2018) and 30th June, 2018,” she said.

The CS stated that despite the tremendous efforts by HELB, out of the 396,680 loan accounts that have matured, 81,994 of these accounts worth Sh8.2 billion are not being repaid.

She says the waiver will ensure that those who admitted to universities are adequately catered for.

“This is a key concern for the Government as it inhibits HELB’s ability to fund the growing number of new students joining higher education,” she said.

She further requested employers to ensure that all university graduates in their employ to repay these loans as a primary requirement. “Collaborative efforts between HELB and other partners towards recovery of these loans are therefore most welcome.”

She also requested past beneficiaries of the University loan scheme to help educate other young Kenyans by repaying their loans.

“This is the only way HELB can be able to fund more students,” she said.

She stated that the government was also working with HELB to recover loans held by Kenyans in the Diaspora.

“I call upon HELB to fast-track the conclusion of these discussions and sign the appropriate Memorandum of Understanding to enhance loan repayments by the Diaspora,” she stated.

She also explained that the government is working on relevant modalities to implement President Uhuru Kenyatta’s Directive that HELB should start funding Kenyan students in foreign universities.

“Towards this end, the Government is working on relevant modalities to implement this Directive. This underscores the need for us to reflect creatively especially regarding the mobilisation of necessary resources,” she stated.

She also stressed the need for HELB to review its capacity and capability to finance the increasing number of students in institutions of higher learning.

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Source capitalfm

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