The Higher Education Loans Board (HELB) has issued a warning to 85,000 Kenyans, warning them that if they do not pay their loans, they will be placed on the Credit Reference Bureau (CRB).
HELB CEO Charles Ringera said at a press conference on Wednesday that the outstanding loans totaled Ksh 9.5 billion.
Wavi Muigai, the HELB Communications Director, stated that arrangements are in place to ensure that the defaulters pay.
“They will be reported on the CRB, and the HELB Act imposes fines of Ksh5,000 per month. People pay every month, and we keep track of those who pay daily,” Muigai said.
Mr. Muigai (Pictured above)
He also mentioned that “penalties are imposed a year after graduation.”
“If a borrower defaults on a loan for six months in a row, they are put on the CRB list.”
“We don't wait for a certain period because people graduate at various times,” Muigai said.
This comes as a result of Covid-19, which has turned the world upside down, rendering many graduates who took out HELB loans jobless.