HELB Faces a Ksh9.5 Billion Deficit due to Unpaid Loans
By Vera Shawiza / September 4, 2017
A total of 9.5 Billion shillings stands as deficit for the Higher Education Loans Board (HELB) due to unpaid loans from beneficiaries.
To date, the Board has been able to recover loans worth 31 Billion shillings, out of which 4.14 Billion shillings were recovered in 2016/2017 alone.
According to HELB Chief Executive Officer Mr. Charles Ringera, the Board continues to be plagued by a substantial portfolio at risk due to the immense debts being held by beneficiaries.
Since 1974, according to Mr. Ringera, 320,290 loan accounts worth 40 Billion shillings have matured for repayment, while 209,351 loaners holding 20.04 Billion shillings have not matured.
“On behalf of the board, I must re-emphasize the importance of loan repayment as the only way the fund can be sustainable in the long run,” said Mr. Ringera.
HELB CEO who was speaking during the launch of the Barclays Bank Scholarship Programme urged all loan beneficiaries who have not cleared their loans to do so in order to help them fund the education of other students.
Ringera reiterated that the board has continually made strides in automating its process in disbursements as well as loan recoveries in line with a proactive push with regards to FINTECH.
“HELB has made efforts towards bringing services nearer to the people through the devolved structures in the counties. The services are present in 24 Huduma Centres across the country,” added Mr. Charles Ringera.
Since its inception 22 years ago, HELB has been able to support over 620,00 Kenyans to pursue higher education at a total cost of 65 Billion and now has a robust balance sheet of 85 Billion shillings.
Barclays has partnered with the Higher Education Loans Board (HELB) to administer Kshs.63 million fund which will provide bright but needy university students with fees and upkeep money on its behalf.
“HELB has in recent years embarked on external resource mobilization to supplement funding through government capitation. In the spirit of devolution and public private partnerships, interested parties who wish to partner with us in empowering the dreams of Kenyan youth through higher education students financing solutions have been engaged. HELB currently has 15 partners and is currently managing external funds in excess of Kshs 1.5 Billion outside the traditional funding sources,” said Charles Ringera, HELB CEO.