- Many Kenyans have defaulted on paying their loans after graduation because of a lack of employment
- Higher Education Loans Board (HELB) has announced up to 80% penalty waiver to those who will make full payments
- The board stated that the decision is to lighten the load for those struggling to complete repaying their loans due to accruing penalties
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Nancy Odindo, a journalist at TUKO.co.ke, brings more than three years of experience covering politics, news, and feature stories across digital and print media in Kenya.
The Higher Education Loans Board (HELB) has been providing loans to financially needy students for their higher education.
However, many beneficiaries have failed to repay these loans despite having secured employment, while others have defaulted because of prolonged unemployment after graduation, leading to accumulating penalties on their loans.
On Tuesday, August 27, HELB introduced an 80% waiver on accrued penalties for those who make full payments.
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"Penalties slowing down your repayment? We have waivers on accrued penalties to lighten the load. You can pay in a lump sum today to access up to an 80% waiver on your penalties," HELB announced on their X platform.
When did Ruto pay his HELB loan?
Meanwhile, President William Ruto, while discussing the new university funding model with students, noted that those who are still unemployed cannot be compelled to repay their loans.
He shared his own experience, explaining that he repaid his HELB loan of KSh 55,000, along with a 2% interest, with his first salary as a member of Parliament.
"I agree that we must look into the subject of loan grace periods so that no student should be asked to pay until they have a job. You can't ask a person who is tarmacking to pay, you'll be asking for the impossible," said Ruto.
Kenyans not happy with new funding model
In other news, the new university funding model has sparked backlash among many Kenyans.
Businesswoman Agnes Kagure joined the debate, agreeing that various bursary funds are hindering access for deserving students.
She suggested establishing a central body to manage all bursaries, preventing politicians from controlling this crucial aspect of education access.
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
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