The Higher Education Loans Board (HELB) has announced a 100 per cent penalty waiver, citing economic hardship faced by defaulters due to the Covid-19 pandemic.
The waiver will run from March 1 to April 30, HELB Chief Executive Officer Charles Ringera said in a statement on Tuesday, March 1.
“Due to the Covid-19 pandemic, Kenya just like many other countries globally has experienced a slowing down of the economy over the last two years. The unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment,” said Ringera.
“This, coupled with inadequate funding from the Exchequer (The National Treasury), has inadvertently created a funding challenge for students seeking HELB loans.
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“HELB appreciates the fact that owing to the prevailing economic situation, the loan beneficiaries' repayment ability may take some time to stabilise.
“HELB, therefore, wishes to announce a 100 per cent Covid-19 penalty waiver 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 lumpsum.”
HELB, which has been in existence since 1995, previously rolled out 100 per cent waivers in 2013 and 2018.