HELB Extends Penalty Waiver By Two Months

HELB Extends Penalty Waiver By Two Months The Covid-19 pandemic waiver for loan defaulters has been extended by the Higher Education Loans Board (HELB) until June 30, 2022.The Board’s CEO, Charles Ringera, announced in a statement dated May 4, 2022, that the 100 percent waiver, which was set to expire on April 30, would now be extended for two months.The waiver was implemented by HELB in response to the economic fallout that caused millions of Kenyans to lose their jobs, making it difficult for the beneficiaries to continue repaying their loans.“Due to the Covid-19 pandemic, Kenya just like many other countries globally has experienced a slowing down of the economy over the last 2 years."We acknowledge that unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment”, read the statement in part.HELB recipients will be exempt from the late repayment penalty for an additional two months as a result of the change.However, Ringera stated that the Board is experiencing funding gaps, which are limiting its ability to sponsor more students.“Coupled with inadequate funding from the Exchequer has inadvertently created a funding challenge for students seeking HELB loans,” he stated.On May 3, 2018, HELB announced a similar waiver, but only for those who paid the loan in full.The 2018 move, on the other hand, was intended to increase repayments, as opposed to the current window, which is intended to protect loanees from the Covid-19 pandemic.Loan repayment compliance has been low, owing in part to the country’s high unemployment rate.Politicians are also concerned about higher education funding as the country prepares for the August 9 elections. For example, Deputy President and United Democratic Alliance (UDA) presidential candidate William Ruto has promised to make a grant to HELB if elected as the 5th Head of State.HELB Extends Penalty Waiver By Two Months

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