The Higher Education Loans Board (HELB) has announced a 100 percent Covid-19 penalty waiver on student loans.
According to the board’s Chief Executive Officer Charles Ringera, the action was due to the slowing economy in the country within the last two years.
“It is important for all beneficiaries to honor their obligation as stipulated in the loan application terms & conditions so as to empower the dreams of another needy student,” he said.
He stated that unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment.
He indicated that this, coupled with inadequate funding from the Exchequer [The National Treasury], has inadvertently created a funding challenge for students seeking HELB Loans.
He observed that owing to the prevailing economic situation, the loan beneficiaries’ repayment ability may take some time to stabilize.
HELB has previously offered 100% Penalty Waiver Campaigns in 2013 where 10,110 beneficiaries paid off their loans valued at Ksh.1.3 billion and in 2018 where 9,998 beneficiaries paid off their loans valued at Kshs.870 million.