Relief for loanees as Helb offers full penalty waiver

Beneficiaries of the Higher Education Loans Board (Helb) loans will not have to pay penalties levied on their loans between March and April, 2022.

This comes after the State Corporation announced a 100 percent Covid-19 penalty waiver for its loanees who will repay their loans in lump sum.

The campaign dubbed #KamilishaMalipoYaHelb, will run between March 1, 2022 and April 30, 2022 and is aimed at encouraging repayment by recipients of the Helb loans.

Helb chief executive officer Charles Ringera said Kenya, just like many other countries globally, has experienced slowing down of the economy in the past two years due to the Covid-19 pandemic.

This has taken a hit on the repayment ability of the loan beneficiaries’ which may take some time to stabilise owing to the prevailing economic situation.

“HELB therefore wishes to announce a 100% Covid-19 Penalty waiver dubbed #KamilishaMalipoYaHELB from March 1, 2022 to April 30, 2022 to loanees as an appreciation of their commitment to repay their loans, even with the effects of the Covid-19 pandemic, as well as to encourage, the loanees who haven’t started repaying to do so and repay in lump sum,” said Mr Ringera.

He added that unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected Helb loan repayment.

This, coupled with inadequate funding from the Exchequer, has inadvertently created a funding challenge for students seeking Helb loans.

“It is important for all beneficiaries to honor their obligation as stipulated in the loan application terms and conditions so as to empower the dreams of another needy student,” he said.

A similar campaign in 2013 netted Helb Sh1.3 billion from 10,100 beneficiaries who took advantage of the penalty waiver window to pay off their loans. In 2018, the agency received Sh870 million from 9,998 beneficiaries.