Narok Senator Ledama Olekina has proposed removing interest charges on loans from the Higher Education Loans Board (HELB) to ease the financial burden on graduates as they work towards economic stability after completing their studies.
In a post on X, formerly known as Twitter, Olekina called for the abolition of interest on HELB loans, saying young people deserve opportunities rather than debt.
“We must scrap interest on HELB loans. Our youth deserve opportunity, not debt,” reads part of the X post.
Loans issued by the Higher Education Loans Board (HELB) to undergraduate and TVET students attract a subsidised annual interest rate of four per cent on the outstanding amount, alongside an annual ledger fee of KSh1,000.
First disbursement
The loans agency states that interest on HELB loans starts accumulating immediately after the first disbursement to direct-entry undergraduate students, while Jielimishe loans advanced to professionals attract an annual interest rate of 10 per cent.
Borrowers who delay or default on repayments risk penalties of up to KSh5,000 per month for undergraduate loans and may also be listed with the Credit Reference Bureau (CRB).
Olekina argued that the growing interest burden is placing immense pressure on young people, many of whom are still unemployed years after graduating. He urged President William Ruto to take action to address the situation.
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“When jobs are scarce, imposing a four per cent interest burden is unjust, especially on loans funded by taxpayers. President Ruto must act on this now,” said Olekina.
By Frank Mugwe
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