The Higher Education Loans Board (HELB) announced a 100% penalty waiver, citing the economic hardship faced by defaulters due to the Covid-19 pandemic.
The waiver will apply from March 1 to April 30, HELB chief executive Charles Ringera said in a statement Tuesday, March 1.
“Due to the Covid-19 pandemic, Kenya, like many other countries around the world, has experienced a downturn in the economy over the past two years. Unemployment and underemployment, as well as a difficult environment for loanees to start and run businesses, have affected the repayment of HELB loans,” Ringera said.
“This, coupled with insufficient funding from the Exchequer (the National Treasury), has inadvertently created a funding challenge for students seeking HELB loans.
“HELB appreciates that due to the current economic situation, the repayment capacity of loan recipients may take some time to stabilize.
“HELB therefore wishes to announce a 100% Covid-19 penalty waiver from March 1, 2022 to April 30, 2022, to loanees as an appreciation of their commitment to repay their loans, even with the effects of Covid-19, as well as to encourage borrowers, who have not started to repay, to do so and repay in a single payment.
HELB, which has been around since 1995, previously rolled out 100% waivers in 2013 and 2018.