HELB vows to name and shame loan defaulters in Sh50b debt

Students being served at the Higher Education Loan Board (HELB) offices in Nairobi. [Photo Courtesy]

Loan defaulters at the Higher Education and Loans Board (HELB) have 30 days to commit to repayment, lest they be published in the list of shame.

In a notice circulating online, seen by the Standard Digital, the HELB has said that legal actions will be taken against each of the loan defaulters.

The 1995 established state corporation has resolved to make defaulters since 1975 widely known by publishing their names and photos on leading newspapers in the country.

 “Please take note that names and photos of loan beneficiaries who have defaulted repayment of the loans from 1975 will be published in the leading newspapers after expiry of 30 days from the date of this notice,” read the notice.

SEE ALSO :HELB must change the way it deals with loan defaulters

After the thirty days, it added that it will proceed to take legal actions against the defaulters.

According to Helb, more than 80, 000 Kenyans have failed to remit a total of a Sh50 billion loan.

Defaulters are slapped with a Sh5, 000 penalty per month according to Helb policy.

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The HELB said the defaulters have not reacted to any communication addressed to them over the matter and their actions have hindered funding of other needy students.

“The funds received from the loan's repayment are used to fund the current needy students, therefore, sustained defaults hinder funding of other Kenyan youths,” read the notice.

SEE ALSO :HELB should rethink approach to recover pending loans

The loans board has urged those servicing their loans to get in touch with them via the portal portal or by dialing *426# on the the phone or through their application.

Helb funds university students to facilitate their studies and sometimes accommodation in campus and after their graduations, the students are expected to repay the funds with interest.

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