This archive report was first published on 28 August 2021.
On August 28, 2021, a report by Kenyan Digest highlighted the challenges faced by Higher Education Loans Board (HELB) beneficiaries in repaying their loans.
Despite efforts to review the law, HELB beneficiaries will continue to repay their loans at 4% interest and will have a one-year window to begin repayment.
A proposal by Nominated MP Gideon Keter aimed to extend the repayment period from one to five years and reduce the interest rate from 4% to 3%.
Additionally, Keter sought to waive interest on the principal amount for youth and people with disabilities until they secure employment.
However, the National Assembly Committee on Education, chaired by Busia Woman Representative, rejected the proposal, citing concerns that it would undermine HELB's financial capacity and existence.
According to the committee, reducing the interest rate would require the National Treasury to provide more budgetary allocations to HELB.
These concerns come amidst a challenging job market, where a 2014 study found that Kenyan graduates can spend an average of five years after leaving university before landing their first job.
The COVID-19 pandemic has further exacerbated the situation, with a total of 5 million people losing their source of income as of December 2020.
A census report by the Kenya National Bureau of Statistics (KNBS) revealed that 39% of the youth in the country are unemployed, representing 5,341,182 or 38.9% of the 13,777,600 young Kenyans.
