HELB Announces 80% Penalty Waiver For Loan Defaulters

The Higher Education Loans Board (HELB) has announced a significant 80% waiver on accrued penalties for loan defaulters who choose to clear their outstanding balances in a single payment.

This initiative, aimed at easing the financial burden on thousands of HELB beneficiaries struggling with repayment, is expected to encourage compliance and facilitate debt clearance.

In an official notice issued on Monday, March 24, HELB urged defaulters to seize this opportunity by reaching out through its various communication channels, including phone calls, direct messages, and emails.

The board emphasized that the waiver is designed to provide relief while ensuring that funds continue circulating to support future students in need of financial assistance for their education.

Read Also: Government Announces New HELB Disbursement Dates

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

According to HELB Chief Executive Officer Charles Ringera, this move is a gesture of appreciation toward borrowers who, despite the tough economic times, are willing to honor their financial obligations.

He acknowledged that the economic downturn caused by the COVID-19 pandemic has severely impacted Kenya, making it difficult for many graduates to secure stable employment or establish businesses that would enable them to repay their loans.

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

“We acknowledge that unemployment, underemployment, and a challenging business environment have significantly affected HELB loan repayment. This initiative is meant to ease the burden on defaulters while encouraging them to take proactive steps towards clearing their debts.”

This is not the first time that HELB has introduced such an incentive. In 2018, the board implemented a 100% penalty waiver to encourage lump sum repayments, a move that saw many loanees clear their outstanding balances.

These periodic waivers play a crucial role in ensuring compliance, particularly for those who have struggled to meet their HELB repayment obligations years after graduating.

By offering substantial penalty reductions, HELB aims to recover funds that can be reallocated to support new students in need of educational financing. The initiative aligns with the board’s broader goal of sustaining a revolving fund that continuously benefits successive generations of Kenyan students.

With thousands of graduates still unable to meet their repayment obligations due to financial hardships, HELB’s latest waiver program serves as both a relief and a call to action. While the board continues to offer various repayment options, such incentives are designed to ease the burden on defaulters while ensuring that HELB remains financially sustainable.

Those interested in taking advantage of the 80% penalty waiver are encouraged to act promptly and reach out to HELB before the offer expires. By doing so, they not only clear their financial obligations but also contribute to the ongoing support of higher education funding in Kenya.

Read Also: HELB Disburses Ksh1.56 Billion To Students Following The Government Directive