HELB Introduces 80% Penalty Waiver for Loan Defaulters

The Higher Education Loans Board (HELB) has offered a sigh of relief to loan defaulters by introducing an 80% waiver on accrued penalties for those who choose to clear their outstanding debts in full.

In a notice issued on Monday, HELB urged beneficiaries who have fallen behind on payments to seize the opportunity by contacting the board through its official communication channels.

“Settle your HELB Loan in a lump sum and enjoy an 80 per cent waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!” read the statement.

While this waiver allows defaulters to ease their financial burden, HELB has not specified when the offer will expire, urging beneficiaries to act swiftly.

HELB’s History of Loan Waivers

HELB has periodically introduced such waivers to boost loan repayment, especially for former beneficiaries facing financial hardships.

In March 2022, the board provided a 100% waiver on penalties to cushion borrowers from the economic downturn caused by the Covid-19 pandemic. Initially set to last a month, the waiver was later extended by two months, ending in June 2022. At the time, HELB Chief Executive Officer Charles Ringera stated that the move was aimed at supporting defaulters struggling with economic challenges.

“Due to the Covid-19 pandemic, Kenya, like many other countries globally, has experienced a slowing down of the economy over the last two years,” the statement said.

“We acknowledge that unemployment and underemployment, as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment.”

A similar 100% penalty waiver was also introduced in 2018 to encourage lump sum repayments.

Call for Loan Repayment

HELB’s latest initiative is part of ongoing efforts to enhance compliance among thousands of former students who have defaulted on their loans. Beneficiaries are urged to take advantage of the waiver while it lasts, easing their financial strain and supporting the sustainability of the loan program for future students.

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HELB Introduces 80% Penalty Waiver for Loan Defaulters