Kenyans with HELB loans have a reason to smile after the institution waived penalties on loans during the Covid-19 period.
The 100 per cent waiver will be applied to Kenyans who are still paying their HELB loans or those who haven’t started paying the loans.
Higher Educations Loans Board (HELB) CEO Charles Ringera said post-Covid effects caused a toll on the economy hence the decision to give a penalty waiver.
“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 said in a press release.
The penalty waiver dubbed KamilishaMalipoyaHelb will be effective from March 1 to April 30.
“HELB appreciates the fact owing to the prevailing economic situation, the loan beneficiaries’ repayment ability may take some time to stabilize,” Ringera said.
HELB has previously offered waivers in 2013 and 2018.
The two years saw the board receive payment totalling up to Sh1.3 billion in 2013. And in 2018, some 9,998 beneficiaries paid their loans valued at Sh870 million.
Ringera urged those who have not started paying off their loans to start making payments this year.
HELB has suffered inadequate funding in the past two financial years. A situation that has affected loan applicants during the disbursement of funds.
In February, HELB bowed to pressure to release the delayed disbursement for university students.
The students had not received their loans several months after the application.
HELB finance manager Mary Wachira called on Treasury to allocate the funds between January and June.
“We need about Sh3 billion just to allocate them the minimum amount,” she said.
Government-sponsored students are funded by Sh70,000 capitation that is paid directly to universities and they are expected to meet the other costs using the loan they get from HELB.
