High court of Kenya has ruled in favour of the comrades who filed a case against the Helb for charging interests way beyond the means to which the loaners can repay.
The three university graduates argued in their application that they find it difficult and threatening to repay their Helb loans which attracts very high interests and penalties given that getting jobs in Kenya is a nightmare to many graduates.The trio further argued that it makes no sense when a loaner is made to repay three or more times the amount loaned by Helb.
After going through the applicants petition the high court judge observed that it was indeed illogical for Helb to charge interests and penalties beyond what was loaned as the principal amount and therefore,directed that from then onwards it was a criminal offence for Helb to charge interests and penalties beyond the principal amount loaned to the beneficiaries of the fund.
Many graduands find it difficult to get clearance from Helb while seeking jobs therefore missing job the opportunities yet it’s mandatory to repay the loans,it was further observed that the interest rate charged was also abnormal given that this fund is meant to subsidize the cost of getting higher education for Kenyan citizens and not a business loan.
This will be a huge reprieve to the university students and thousands of graduates who have not secured any formal employment and as such have not repayed the Helb loans yet.Helb will have to reorganize their loans to comply with the court directives immediately or be jailed for court contempt.
