If you have guaranteed someone to get HELB loan, just run for your own good or else RUTO is coming for you – Look!

Thursday, March 21, 2024 - The National Assembly Committee on Education will be tabling a report in Parliament that seeks to institute hefty penalties for loan guarantors seeking to stand in for a student who has defaulted on their Higher Education Loans Board (HELB) loans.

The Committee reviewed the draft report on the HELB Amendment Bill 2022, which seeks to amend several provisions of the HELB Act 1995.

One of the proposals in the bill, sponsored by Machakos Woman Representative Joyce Kamene, provides that a student can request a guarantor to guarantee any loan issued to them.

This acts as security in case the student defaults, the guarantor is liable to pay the amount together with the interest accrued.

However, the provision also stipulates that if a guarantor is notified of payment and either fails or declines to repay the loan and interest, the guarantor shall be guilty of an offence.

The bill also proposes a jail term not exceeding three years or a Ksh10,000 fine in addition to the loan.

The bill also seeks to scrap the age limit to allow students below 18 years to access financing for their education.

In the current provisions, students ought to be at least 18 years old and have an Identification Card to qualify for a HELB loan.

The change would, however, require the students to have their parents or guardians co-sign the loan agreement.

While reviewing the report, the Committee also received submissions from the Ministry of Education, the Kenya Law Reform Commission, the Office of the Attorney General and the public.

The Committee will table the report in Parliament for consideration.


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