By Kipkemboi Toroitich
The High Court sitting in Nairobi has faulted the Higher Education Loans Board (HELB) for the exorbitant interest rates charged on their loans, ruling that the interests and penalties ought not to exceed the principal amount.
High Court judge Alfred Mabeya, in a ruling on a suit filed by Anne Mugure, Davis Nguthu and Wangui Wachira in 2021, declared that Section 15 of the Helb Act was unconstitutional.
“A declaration is hereby issued that the respondent is not entitled to recover an amount exceeding double the amount advanced,” read part of the ruling.
The petitioners had filed that HELB’s penalties and interest rates were so high that they more than doubled the principal amount in a short period, making it almost impossible to plan for repayments.
They argued that their socioeconomic wellbeing was threatened, contravening the provisions of the Constitution to the right to good living.
As a result, they submitted, it was a nightmare getting a job as they were denied clearances as per the requirement of Chapter 6 of the same Constitution.
Though HELB sought to oppose the application, arguing that it was not accorded a chance to address the grievances of the petitioners, the court maintained that those who seek the loans are poor Kenyans who direly need it to advance their education and come out of poverty.
It was then ironic that they are charged highly and prevented from accessing job opportunities based on their defaulting on repayment.
Now HELB will be obligated to restructure its loans and repayments to comply with the court ruling.
