Helb offers 100pc penalties waiver over Covid impact
by Irene Githinji
@gitshee
Higher Education Loans Board (Helb) yesterday launched a 100 per cent penalty waiver for loanees.
Dubbed the #KamilishaMalipoYaHelb, the campaign will run to April 30.
Chief Executive Officer Charles Ringera said the move was an appreciation of loanees for their commitment to service their loans even with the effects of Covid-19.
It also seeks to encourage loanees who have not started repaying to do so in lump sum, he said.
“Due to Covid-19 pandemic, Kenya, just like many other countries, has experienced a slowing down of the economy. The unemployment and underemployment as well as the challenging environment for loanees to start and run businesses has affected Helb loan repayment,” said Ringera.
Ringera said that in 2013, Helb offered a 100 per cent penalty waiver which resulted in 10,110 beneficiaries paying off their loans valued at Sh1.3 billion. A similar waiver in 2018 saw 9,998 beneficiaries pay loans valued at Sh870 million.
The CEO said the challenges in repaying the loan, coupled with inadequate funding from the National Treasury, had created a funding challenge.
Sated he: “Helb appreciates the fact that owing to the prevailing economic situation, the loan beneficiaries’ repayment ability may take some time to stabilise. It is important for all beneficiaries to honour their obligation as stipulated in the loan application terms and conditions so as to empower the dreams of another needy student.”
Funding deficit
Helb loan deductions must be remitted by 15 day of every month. Failure to remit, or delayed remittance, attracts a 5 per cent penalty of the total amount due on the employer.
In the financial year 2021/2022, Helb planned to finance 74,438 first year university students against 128,073 students placed by Kenya Universities and Central Placement Services.
Helb requested for an additional Sh4.9 billion to cover the deficit.
by Irene Githinji
@gitshee
Higher Education Loans Board (Helb) yesterday launched a 100 per cent penalty waiver for loanees.
Dubbed the #KamilishaMalipoYaHelb, the campaign will run to April 30.
Chief Executive Officer Charles Ringera said the move was an appreciation of loanees for their commitment to service their loans even with the effects of Covid-19.
It also seeks to encourage loanees who have not started repaying to do so in lump sum, he said.
“Due to Covid-19 pandemic, Kenya, just like many other countries, has experienced a slowing down of the economy. The unemployment and underemployment as well as the challenging environment for loanees to start and run businesses has affected Helb loan repayment,” said Ringera.
Ringera said that in 2013, Helb offered a 100 per cent penalty waiver which resulted in 10,110 beneficiaries paying off their loans valued at Sh1.3 billion. A similar waiver in 2018 saw 9,998 beneficiaries pay loans valued at Sh870 million.
The CEO said the challenges in repaying the loan, coupled with inadequate funding from the National Treasury, had created a funding challenge.
Sated he: “Helb appreciates the fact that owing to the prevailing economic situation, the loan beneficiaries’ repayment ability may take some time to stabilise. It is important for all beneficiaries to honour their obligation as stipulated in the loan application terms and conditions so as to empower the dreams of another needy student.”
Funding deficit
Helb loan deductions must be remitted by 15 day of every month. Failure to remit, or delayed remittance, attracts a 5 per cent penalty of the total amount due on the employer.
In the financial year 2021/2022, Helb planned to finance 74,438 first year university students against 128,073 students placed by Kenya Universities and Central Placement Services.
Helb requested for an additional Sh4.9 billion to cover the deficit.
