In a bid to encourage loan repayment, the Higher Education Loans Board (HELB) has announced an 80% waiver on accrued penalties for defaulters who choose to settle their loans in a lump sum.
The notice, issued on Monday, March 24, urged eligible loanees to take advantage of the offer by reaching out through the board’s official communication channels.
“Settle your HELB Loan in a lump sum and enjoy an 80% waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!” the announcement read. However, the notice did not specify an end date for the waiver.
This initiative follows HELB’s history of offering penalty waivers to encourage defaulters to clear their loans. In March 2022, the board launched a 100% waiver campaign aimed at easing the burden on defaulters affected by the economic impact of the Covid-19 pandemic. The waiver, initially set to expire in April 2022, was extended for two more months as a gesture of goodwill.
HELB Chief Executive Officer Charles Ringera previously acknowledged that economic challenges, including high unemployment and difficulties in sustaining businesses, had hampered loan repayment efforts among graduates.
“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,” Ringera noted in a past statement. “We acknowledge that unemployment and underemployment, as well as a challenging environment for loanees to start and run businesses, have affected HELB loan repayment.”
Similar waivers have been introduced in the past, including a 100% penalty waiver in 2018, demonstrating HELB’s continued efforts to enhance compliance among beneficiaries who have struggled to meet repayment obligations.
With this latest offer, HELB aims to provide a financial reprieve to thousands of Kenyans while bolstering loan recoveries to sustain funding for future students. Borrowers looking to take advantage of the waiver are encouraged to contact HELB promptly to arrange for lump sum repayment
