No HELB Interest on jobless youths
Members of parliament have been trying hard to make changes to the Higher Education Loans Board (HELB) act of 1995 to bar the Board from mounting interest on graduates and people living with disabilities after graduation until they secure their first job.
This motion has been put forward for the third time by the Machakos Woman Representative Joyce Kamene who has urged the Kenya Kwanza Government to live by its word by ensuring that the changes they promised the Kenyans on HELB Loan has been effected.
Kenya Kwanza Campaign Promise on HELB
The Kenya Kwanza Government made it clear during its campaigns that it will restructure the Higher Education Loans Board in order to offer interest free loans.
If this motion sails through the parliamentary stage, then it will be the work of the president to live by his word and sign it into a law.
The previous government led by Uhuru Kenyatta rejected to sign this bill into a law citing it will cripple the efficacy of the revolving fund.
During the Kenya Kwanza campaigns they also stated clearly that they will convert the loan into a grant and individuals benefiting out of it will repay the loan after ten years.
Kamene stated that she also wishes that the Board will lower the interest rate from 4% to 3%.
She further cites that the penalties accrued on the loan for defaulters to be effected immediately one secures a job and intentionally defaults to pay.
Currently, the Higher Education Loans Board (HELB) charges a penalty of Sh5,000 per month for defaulters.
“The aim of this proposal is to reduce the financial burden on recent graduates who are expected to pay large sums of money to HELB even before securing employment or becoming financially stable,” Kamene says in her memorandum.
Number of defaulters and amount accrued
Recently, the Higher Education Loans Board (HELB) released data of about 125,609 defaulters owing a sum of Sh15.22 billion.
Former students have also defaulted up to a sum of about Sh60 billion.
Due to high number of defaulters, the Board has been crippled financially leading to the delay in the disbursement of funds to students who resolve to take to the streets.
No HELB Interest on jobless youths
The CEO of the Board, Dr. Charles Ringera recently mentioned that over 140,000 university students have not been funded due to the cash crisis experienced at HELB.
He mentioned that they need a sum of about Sh5.6 billion in order to fund all these students.
HELB Useful Links
How to Apply For HELB undergraduate & TVET Loans 2023
HELB Loans for TTC Trainees, How To Apply
