HELB backs Amina on use of police to deal with loan defaulters


HELB backs Amina on use of police to deal with loan defaulters

In Summary

  • Higher Education Loans Board has backed Education Cabinet Secretary Amina Mohamed to use law enforcement agencies to deal with loan defaulters as a way to recover loans.
  • Education CS Amina said HELB would work with police and employers to get beneficiaries of the students’ loans who are defaulting.
  • It was a statement that evoked mixed reactions from Kenyans.

Higher Education Loans Board (HELB) has backed Education Cabinet Secretary Amina Mohamed to use law enforcement agencies to deal with loan defaulters as a way to recover loans.

The Education CS said the loans board would work with police and employers to get beneficiaries of the students’ loans who are defaulting.

On Friday, HELB released a statement over the mixed reactions to her statement saying: “There was public uproar mainly as a result of the CS comments being taken out of context and misconstrued.

“The focus of the statement however is to promote compliance, integrity and to ensure access to funds for future loan applicants from needy backgrounds.”

HELB Chief Executive Officer Charles Ringera stated that defaulting in servicing the loan is a criminal offence according to the HELB Act and they are free to seek help from law enforcers.

“Default in Loan repayment according to the HELB Act is a criminal offence and therefore HELB can seek the intervention of the Officer of the Director of Public Prosecutions where loanees and employers are breach of Section 15 and 16 of the HELB Act,” said Mr. Ringera.

The emphasis to use police was laid on perennial defaulters who are employed and Ringera says to fulfil the promise of empowering Kenyans dream, they will have to use all means possible to recover the loans.

According to a report released by HELB, about Ksh.7.2 billion is yet to be recovered from defaulters.

Story by Tony Anelka

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