The Higher Education Loans Board has been at the center of ensuring that Kenyan students are well catered for so that there can be no mishaps in the future of the country in eliminating illiteracy.
Picture courtesy. HELB offices.
However, in the past one or two years, HELB has been struggling given the high number of students that are joining post secondary tertiary institutions as well as Universities across the country.
Former beneficiaries of the loans have been unable to pay back what they owe and this has left the institution at a cash crunch.
According to The Daily Nation this Monday Morning, here are the three reasons why HELB is struggling:
Covid Effects
Chief Executive Officer for HELB, Charles Ringera has attributed the surge in application to negatives effects of Covid where some students have overstayed in their studies since the education calendar was disrupted.
Loan Recoveries
Ringera insists that they are well into recovering these loans this year and this will be surpassed by a whopping 4.3 billion Kenya shillings but the challenge still remains on the demand side.
Financial Struggles
Financial struggles go on, 107,211 past loanees are said to owe the board a whopping 10.6 billion shillings in what Ringera describes as “hardcore debts”, which are 3 years or over since maturity but are definitely not being serviced.
Content created and supplied by: KimaniOsoro21 (via Opera
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