- Sotik MP Francis Sigei urged the boss to devise means to ensure the loans are retrieved on time.
- Kilome MP Nzambia Thuddeus said it's surprising if there are MPs who have defaulted on Helb loans.
Image: CHARLENE MALWA
Higher Education Loans Board CEO Charles Ringera has revealed that Sh8.45 billion is owed by Kenyans who graduated more than 10 years ago.
Ringera told MPs that as of February 2023, the board had arrears totalling Sh60.3 billion, part of which includes Sh8.45 billion.
"Most of the loans have been accumulated by students who at times left the country, so we work with embassies to try to get that money back," Ringera said.
The Helb boss was speaking when he appeared before the Public Investments Committee on Education and Governance.
He explained that there is a grace period to start paying the loan once a student graduates.
"We give them one year to find employment then they can start paying the loan but most of them go up to ten years," he said.
Sotik MP Francis Sigei urged the boss to devise means to ensure the loans are retrieved on time.
Sigei explained that the measures should have a penalty which will ensure payment compliance.
"We have to be good examples because if it starts with us MPs not paying loans then it's not good. Maybe you can write to National Assembly or Senate to help you recover the money," Sigei said.
Kilome MP Nzambia Thuddeus said it's surprising if there are MPs who have defaulted on Helb loans.
He faulted those who had not paid the loan, saying the funds could be used to support needy students in universities.
"Try to come up with a mechanism where there's a way you can charge if they default they pay some amount per month," Nzambia said.
In February, Treasury released Sh2.7 billion to support university students' loans and bursaries.
This was according to a statement sent out by Education CS Ezekiel Machogu.
Machogu said the government is keen on helping students coming from vulnerable families.
"I wish to announce that the National Treasury and Economic Planning has released Sh2.7 billion for 180,000 eligible students," Machogu said.
This disbursement of funds allowed Helb beneficiaries to register for their exams.