The Higher Education Loans Board (HELB) has given students who have loans an extension of the Covid-19 100 percent penalty waiver which will be up to June 30, 2022.
The penalty waiver was effected on March 1, 2022 and was expected to run through April 30, 2022.
The Chief Executive Officer of the institution, Aaron Ringera said that the reason for the extension is due to the effects of Covid-19 to the economy.
“Due to Covid-19 pandemic, Kenya just like many other countries globally, has experienced a slowing down of the economy over the last two years.
We acknowledge that unemployment and underemployment has affected Helb repayment,“ said Ringera.
Ringera noted that apart from a low number of students paying their loans, the institution has been facing numerous challenges which include inadequate funding from the National Treasury.
“The prevailing tough economic environment, the initial end of the penalty waiver April 30, 2022 also coincides with the back-to-school season, Helb, therefore, made numerous requests to extend the waiver, “Ringera stated.
The campaign was started by the institution to encourage more students to pay their loans.
With an increase in the number of students who pay back the money, the #KamilishaMalipoyaHelb campaign would facilitate more students to enroll in the programme.
The loans board has previously offered a 100 percent waiver in 2013 where 10,110 beneficiaries paid off Sh1.3 billion.
In 2018, the exercise yielded Sh870 million in loan repayments from 9,998 beneficiaries.