Your Read is on the Way
Every Story Matters
Every Story Matters
The Hydropower Boom in Africa: A Green Energy Revolution Africa is tapping into its immense hydropower potential, ushering in an era of renewable energy. With monumental projects like Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) and the Inga Dams in the Democratic Republic of Congo, the continent is gearing up to address its energy demands sustainably while driving economic growth.
Northern Kenya is a region rich in resources, cultural diversity, and strategic trade potential, yet it remains underutilized in the national development agenda.
Can AI Help cure HIV AIDS in 2025
Why Ruiru is Almost Dominating Thika in 2025
Mathare Exposed! Discover Mathare-Nairobi through an immersive ground and aerial Tour- HD
Bullet Bras Evolution || Where did Bullet Bras go to?
The Higher Education Loans Board (HELB) employs a structured and institutionalized approach to identify, trace, and recover outstanding student loans from beneficiaries who default on repayment. Below is a detailed breakdown of how the Board undertakes this process within the framework of government systems and financial regulations:
HELB works in close coordination with several state agencies including:
-Kenya Revenue Authority (KRA): Through taxpayer data, HELB identifies individuals who are gainfully employed but have not commenced loan repayment.
-National Hospital Insurance Fund (NHIF) and NSSF: Contributions to these institutions serve as signals of formal employment, triggering HELB’s follow-up.
-National Transport and Safety Authority (NTSA): Vehicle registration data can assist in locating high-value defaulters.
This collaboration enables HELB to match loan beneficiary records with employment and asset ownership data, enhancing their ability to trace non-compliant borrowers.
Employers are legally required to deduct loan repayments from employees who benefitted from HELB loans. HELB:
-Sends formal notices to employers with lists of identified defaulters.
-Requires employers to commence salary deductions under the check-off system.
-Pursues legal action against employers who fail to comply, including potential penalties for withholding or misreporting repayments.
Where a loan beneficiary cannot be traced or is unwilling to repay, HELB reaches out to the guarantors listed in the loan agreement. Guarantors are then officially informed of their responsibility to service the debt, as stipulated in the terms of agreement.
HELB partners with licensed CRBs to list chronic defaulters. Being blacklisted affects:
-The individual’s credit score.
-Access to personal and business loans from commercial banks and microfinance institutions.
-Their overall financial credibility in both private and public sectors.
For long-term defaulters, particularly those with substantial outstanding balances or clear evidence of deliberate evasion, HELB:
-Engages third-party debt collectors.
-Pursues court proceedings for mandatory repayment orders.
-In some cases, may involve law enforcement where fraud or willful concealment is suspected.
HELB maintains regular formal communication with beneficiaries via:
-Email notices, SMS reminders, and telephone calls.
-Digital outreach through the e-Citizen portal and KUCCPS-linked systems.
-Periodic repayment campaigns offering discounts or waiver incentives for lump-sum payments.
Additionally, HELB provides structured repayment options including:
-Grace periods for unemployed individuals.
-Restructured repayment plans for those facing financial hardship.
-Temporary deferral upon official request and evidence.
To curb future defaults, HELB has implemented a financial literacy module for first-time applicants. This module:
-Informs students of the legal and moral obligations attached to the loan.
-Explains consequences of default.
-Encourages responsible use of credit and career planning in relation to repayment timelines.
-Cross-referencing with KRA, NHIF, NSSF, and NTSA data
-Employer-enforced salary deductions
-Legal responsibility of guarantors
-Credit bureau blacklisting
-Engagement of debt collectors and court action
-Flexible repayment plans and defaulter support
-Preventive education for loan recipients
0 comments