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HELB notice on publishing of loan defaulters

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HELB notice on publishing of loan defaulters

Nairobi, 20th November, 2019. The Higher Education Loans Board wishes to update as follows regarding the Notice on Publishing University Loan Defaulters.

The Higher Education Loans Board (HELB) is a State Corporation established in July 1995 an act of Parliament, the Higher Education Loans Board Act, CAP 213A of the Laws of Kenya. HELB is mandated to provide loans, bursaries and scholarship to Kenyan students pursuing higher education in recognized institutions of higher learning and to recover loaned out funds from the beneficiaries.

 

From inception to 30th September, 2019, HELB has empowered dreams of more than 927,610 students and disbursed over Kshs. 108B. As at 30th September 2019, there were 492,227 matured loan accounts worth Kshs. 58.5B while 435,383 loanees holding Kshs. 49.5B had not matured for repayment.

 

HELB wishes to acknowledge and sincerely appreciate 175,993 loan beneficiaries whose accounts valued at Kshs. 26.8B are currently repaying their loans and 229,631 accounts valued at Kshs. 23.1B. who have repaid their loans in full and without whom the HELB would not have been able to deliver on her mandate of empowering dreams of needy students. We salute and respect Kenyans who have honored or honor their obligation to repay their student loans. They are true Kenyan heroes!

 

Bearing in mind that the student funding budget for 2019/2020 is Kshs. 15.5B for over 370,000 students in Universities and TVET Colleges, HELB is expected to recover Kshs. 4.9B of the Kshs. 15.5B through the loan recoveries from past beneficiaries. If the target of Kshs. 4.9 B is not achieved 113,953 students will not be awarded loans in the financial year 2019/2020 and therefore dropping out of learning institutions. To this end, HELB has put in place various strategies to ensure that no funding shortfall is experienced including engaging the 85,211 loan beneficiaries whose loans are valued at Kshs.  Kshs. 10.6B have matured and still remain in default from as far back as 1975 as clustered below:

Cluster Number Amount [Kshs] Percentage
Pre HELB (1975-1994)      11,117              682,286,961 13%
1995 to 2009      20,886          2,658,794,785 25%
2010 to 2018      53,208          7,310,204,527 62%
Total      85,211         10,651,286,273  100%

 

While the HELB Act of 1995 does not peg loan repayment to employment, HELB appreciates the fact that owing to the prevailing economic situation including the unemployment and underemployment

challenges, the loan beneficiaries’ repayment ability may take some time to stabilize. Further, HELB has previously offered 100% Penalty Waiver Campaigns in 2013 where 10,110 beneficiaries paid off their loans valued at Kshs 1.3B and in 2018 where 9,998 beneficiaries paid off their loans valued at Kshs 870M

There are however two clusters of beneficiaries who completed university between 1975 and 2009 that HELB believes may be in a position to repay their loans but may have chosen to ignore our numerous letters, sms’s and calls to comply or to come and engage on a flexible repayment plan.

 

Consequently, HELB would wish to reiterate that it is important for all beneficiaries to honor their obligation as stipulated the loan application terms & conditions so as to enable another needy student to pursue their dreams. However, where this does not happen, HELB as guided by the HELB Act CAP 213A, will continue to pursue and engage the defaulters to ensure that such defaults do not disadvantage the students in need. It is not our intention to complicate lives for Kenyans. Indeed, it is not only our hope and expectation, but truly our duty to recover mature loans from past beneficiaries, especially those with the means to settle their student loans and enable fellow compatriots to enjoy the same privileges as them in their time.

 

In addition this is not just loan repayment and statutory obligation. It is also an issue of integrity.  Loan repayment is reflection of honesty and high moral character in an individual’s professional and personal life; it is also an indication of respect for statutory obligations arising under various Acts of Parliament. It is inconceivable that a person whose dreams were empowered through a HELB loan can willfully fail to repay their loan. It is not only and illegality but also wrongful conduct in furtherance of a personal benefit and can be construed as misuse of public resources. HELB funds are meant to finance higher education for needy and deserving Kenyans not to be withheld for personal benefit. The Constitution under Article 43 provides that every Kenyan has the right to Education. HELB is committed to upholding the right to education for future needy loan applicants.

In the light of the above, HELB wishes to clarify that the target defaulters to be published shall constitute the cluster of 32,003 loanees who completed their studies between 1976 and 2009 which is 38% of the total population in default holding Kshs. 3.34B.

Be that as it may, HELB would wish to reassure Kenyans that the provisions of the Data Protection Act, 2019 as well as Article 31 of the Constitution of Kenya, 2010 will be taken into consideration in conjunction with the HELB Act CAP 213A.

 

It is important to remember that HELB listens, come and talk to us so that we can agree on a minimum reasonable rate that will reduce your outstanding loan and help you finish your loan repayment. Therefore, beneficiaries who may have enquiries regarding HELB loan status or repayments are advised to contact HELB Offices from 8am to 5pm, Monday – Friday or self-serve through the following channels:

  1. Email dru@helb.co.ke.co.ke for particulars of their loan accounts.
  2. Loan status may be confirmed via the loanee portal on the website helb.co.ke; USSD Code *642# or HELB App through Google playstore.
  3. The Customer Experience Centre on Ground Floor, Anniversary Towers
  4. Contact Centre: Tel: 0711052000; Social Media: Twitter: @HELBPage or Face Book: HELBpage
  5. Select Huduma Centres: Nairobi-GPO, Machakos, Mombasa, Nakuru, Eldoret, Kisumu, Kakamega, Kisii, Nyeri, Embu, Kitui, Bungoma, Lodwar, Meru, Thika, Kitale, Kericho, Nandi, Muranga, Garissa, Narok, Migori, Chuka, Kilifi, Taita Taveta, Makueni, Bomet and West Pokot.
  6. Loan Repayment Options are available online on https://www.helb.co.ke/repayloan/

HELB continues to call upon all the loanees holding accounts in default, to pay up their loans so that the HELB can continue Empowering Dreams of other deserving Kenyan Youth.

Help educate tomorrow, Pay your HELB Loan today! #TwendeTulipeHELB

HELB CEO, 

Mr. Charles Ringera.

 

-ENDS-

Notes to the Editor  About Higher Education Loans Board

The Higher Education Loans Board (HELB) is a state body established by an Act of Parliament – CAP 213A in 1995 mandated to  provide loans, bursaries  and scholarships to Kenyans pursuing higher education in recognized Kenyan Universities and Colleges  and to  recover the same after completion of  studies to facilitate establishment of a revolving fund. The Board is therefore well aligned to Chapter 4, Section 43 (1) (f) of the Constitution of Kenya 2010, that every person has the right to education.