HELB Announced Penalty Waiver To Beneficiaries.
In the latest campaign to encourage repayment, the Higher Education Loans Board (HELB) has announced a penalty waiver for all beneficiaries.
In an official statement issued on Tuesday, March 1, HELB Chief Executive Officer Charles Ringera stated that the bank has resolved to waive all penalties for all loanees.
The waiver period will run from Tuesday, March 1 to Tuesday, April 30, 2022. According to Ringera, the new campaign is an expression of gratitude to the beneficiaries for their efforts in repaying their loans despite the difficult economic conditions caused by the pandemic.
The move is also intended to encourage loan recipients to make lump sum repayments during the waiver period.
The HELB CEO emphasized the importance of beneficiaries repaying their loans so that other needy students can benefit from the funds as well.
“It is important for all beneficiaries to honour their obligation as stipulated in the loan application terms and conditions so as to empower the dreams of another needy student,” Ringera reiterated.
In 2013, HELB also announced a penalty waiver, which resulted in over 10,000 beneficiaries repaying their loans, totaling ksh1.3 billion.
In 2018, a similar campaign was launched in which 9998 loanees paid Ksh870 million.
Even as the economy slowly recovers after nearly two years in a coma, HELB is hoping to capitalize on the latest campaign to encourage more beneficiaries to repay their loans.
HELB announced a crackdown on loan defaulters in 2020, in collaboration with law enforcement. The strategy was intended to improve compliance, integrity, and loan access for other students.
“We are also going to partner with law our enforcement agencies to track down those holding jobs and yet are reluctant to stand up to be counted as responsible and patriotic citizens who honour their debts,” the statement stated in part.
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Loan defaulters face a monthly fine of Ksh5,000, with the Board urging more beneficiaries to repay due to insufficient funding from the National Treasury.
It is estimated that HELB’s beneficiaries own nearly Ksh50 billion, and nearly 15,000 defaulters are untraceable. This has hampered their operations, particularly in terms of early remittance of funds to students.