Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-20 06:57:55
The National Assembly Committee on Education is set to present a report in Parliament that proposes strict penalties for loan guarantors who come forward to cover the debt of a student who has defaulted on their Higher Education Loans Board (HELB) loans. The Committee scrutinized the draft report on the HELB Amendment Bill 2022, aimed at amending various sections of the HELB Act 1995.
One of the key provisions in the bill, championed by Machakos Woman Representative Joyce Kamene, allows students to request a guarantor to secure any loan extended to them. This serves as a form of security, holding the guarantor responsible in case the student fails to repay the loan along with the accumulated interest.
However, the bill also states that if a guarantor is informed of the outstanding payment and fails or refuses to settle the debt and interest, they will be deemed as committing an offense. The proposed penalty includes a jail term not exceeding three years or a fine of up to Ksh10,000 in addition to the loan amount.
Furthermore, the bill seeks to eliminate the age requirement for students, allowing those under 18 years to access financial support for their education. Currently, students must be at least 18 years old and possess a valid Identification Card to qualify for a HELB loan. The new proposal would necessitate parents or guardians to co-sign the loan agreement on behalf of the underage students.
During the review process, the Committee received input from various stakeholders, including the Ministry of Education, the Kenya Law Reform Commission, the Office of the Attorney General, and the general public. The Committee plans to present the report in Parliament for further deliberation.
However, it is important to note that the administration of President William Ruto has disclosed intentions to do away with HELB and introduce the National Skill and Funding Council (NSFC) to enhance loan provisions in the education sector. According to Ruto, NSFC aims to increase the current HELB funds from Ksh11 billion to Ksh22 billion.
In conclusion, the proposed amendments to the HELB Act 1995 are significant in enhancing the loan repayment system and ensuring accountability among guarantors. The move to eliminate the age limit for accessing HELB loans could benefit a wider range of students, while the envisioned transition to NSFC signals a potential shift in the loan financing landscape in Kenya’s education sector. It remains to be seen how these proposals will be received in Parliament and how they will shape the future of educational financing in the country.
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