From dawns of 1974 , the University Loans scheme through Higher Education Loans Board – HELB, has supported over 645,000 Kenyans to pursue higher education at a total cost of 72 billion shillings. Out of this number 396,000 loans accounts worth 47.5 billion shillings have matured for repayment while 264,000 loanees holding 24.5 billion shillings have not matured.
In 2016/2017 financial year alone, the board recovered 4.1 billion shillings which accounted for 40% of the Higher Education Loans Board (HELB) beneficiary students. This amount financed a budget of 10.2 billion shillings for the year. The board had to source for 6.1 billion shillings from the government and other revenues.
Despite the efforts by HELB which includes public awareness to loanees, 81,994 accounts worth 8.2 billion shillings are not repaying their loans. This has posed a serious threat to the Board, hence need to come up with the 100% waiver to encourage defaulters to start servicing their dues.
HELB’s financial year ends on June after which another funding cycle will start on July. The board therefore needs money to ensure efficient funding of the next cohorts of students. This is the reason why the waiver has been granted on the condition that it has to be lump sum.
The waiver announcement that was made earlier last week was therefore because they want to raise money for the next financial year.
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