Ringera: Helb penalties levied on accounts not being serviced

In this interactive series, we invite our readers to send in questions to selected public figures. Answers will be published in the next print and online editions. This week, Higher Education Loans Board (Helb)  CEO Charles Ringera responds to your questions

1. How long does it take for one to be refunded? Koech Brian, via email

A refund is done within a period of three weeks as per the Helb service charter. However, the refund period may vary depending on a number of factors; for example, if one is in employment, the employer has to stop deductions first before Helb can initiate the refund process.

2. So far Helb is doing tremendously well to bring up a learned society. But after studies, a good number of beneficiaries stay for long without jobs. What are you doing as an institution to ensure that these graduates get employed in order to be able to repay the loans to ensure continuity of the good programme? Zephaniah Obaga, Gilgil

The mandate of Helb is to fund students pursuing higher education and also recover the same funds when they mature in order to create a revolving fund. Notably, Helb loan repayment is not pegged to employment and loanees are encouraged to come and engage with us on a flexible repayment plan in order to avoid penalties. It is important to note that there are other state agencies, not Helb, that are charged with the responsibility of creation of employment.

3. In this time of heavy economic challenges, one can easily conclude that your organisation is hardly exempted from this. In other words, how much is Helb affected by this? Francis Njuguna, Kibichoi

Indeed, these are difficult economic times for Helb and we are affected in the following broad ways: Demand for loans by students is higher due to inflation and pressure on household incomes therefore those already receiving loans are requesting for higher allocations.

More students are also requesting for loans to finance their studies in all levels of higher education from Technical and Vocational Training colleges to universities. We have also noted reduced repayments from past loan beneficiaries due to inflation and reduced disposable income therefore making it difficult for Helb to recover these loans.

4. I completed payment of my student loan in 2002 as per Helb letter Ref Helb/RS/SGS/334/21 dated December 3, 2002 confirming the same and instructing my then employer to stop any further deductions. Surprisingly, in April 2018 I received communication from a debt collector that I owe Helb Sh83,897; the bulk of it being interest and penalties. I decided to engage Helb on this matter and sent them a copy of my completion letter. All they have done is promise to look into the matter and, despite my follow-up, this matter is still pending. In the meantime, I continue to receive communication from the debt collector to offset my loan. My fear is that I will be wrongly referred to the Credit Reference Bureaus. My student number was D33/5228/87. Please put this matter to rest and issue my clearance certificate. Tabitha, via email

We have contacted you and advised that your matter was looked into and it was established that your loan was fully paid up as per clearance certificate Helb-27425. The hard copy is available for pickup and your account is now closed. We have since updated your details with the Credit Reference Bureaus and debt collectors accordingly. We sincerely apologise for the inconvenience this may have caused you.

5. Some time back, you did admit that through acts of commission or omission, some undeserving students are awarded loans yet their deserving colleagues miss, leading to some of them terminating their studies. To tame this you had suggested the creation of a forum for those aggrieved to report these cases anonymously to your board for action. Sir, how far did you go with this? Komen Moris, Eldoret

Indeed Helb developed and implemented a whistle-blower tool for all interested parties to post issues of concern anonymously through our website, www.helb.co.ke. Nonetheless, we are also working on a simplified version to facilitate ease of use. The revamped whistle-blower platform should be ready before the end of the year in line with the ongoing review of our portals.

6. Both the national and county governments require those seeking jobs with them to present loan clearance certificates from your board. Sir, has this assisted your board in recovering some of the long-overdue loans? How can it be improved? Komen Moris, Eldoret

One requires a compliance certificate in line with Chapter Six of the Constitution of Kenya when seeking employment. This has greatly assisted since in the process we have been able to net the loanees and put them into repayment bracket. Helb has also made this compliance process much easier for both loanees and non-loanees whereby they can visit our website, log  into the loanee portal and print the compliance certificates from wherever they are at their convenience.

7. Help me understand why students of Kagumo Teachers Training College do not receive Helb loans and the college is a government institution whereas students in technical schools are receiving loans. What should the students in Kagumo TTC do to obtain the loans? Joseph Mwangi Maina Kahuro, Murang’a

Helb is currently offering loans to diploma and certificate students in the following categories of technical institutions: Technical institutions offering technical, diploma and certificate courses under the Ministry of Education, technical institutions registered with the Technical, Vocational Education and Training Authority, technical institutions that are members of Kenya Association of Technical Training Institutions and;

technical institutions admitting students through the Kenya Universities and Colleges Central Placement Service.

Although your college is under the Ministry of Education, it does offer courses in the technical fields. This may change in future and if it does, Kagumo TTC students will then be eligible for Helb Loans.

8. Last time, there was the pending matter of opening of bank accounts at banks not authorised by the Treasury. Has the matter been resolved? Githuku Mungai

All bank accounts opened and operated by Helb are approved the National Treasury as per Public Financial Management Act requirements.

9. I graduated almost ten years ago. My question concerns the penalty on the loan beneficiary. It is unfortunate that some of us haven’t got formal employment. Why should you penalise us yet we are not in employment? Please have mercy on us. Alex, Embu

We appreciate your feedback in regard to your loan repayment and we empathise with your current under-employment status. Key to note is that penalties are levied on a loan account that is not being serviced. In order to enable us empower dreams of other needy students, we rely heavily on loan repayment by past loanees. We therefore urge you to be paying Sh1,500 monthly even through M-Pesa PayBill  200800 where your ID number is your account number so as to avoid penalties. Specifically, Helb loan repayment is not pegged to employment, so Alex, don’t wait start paying now!

10. Sir, can you explain what happened to plans to increase income streams with borrowings from the Unclaimed Financial Assets Authority (UFAA) and starting a national lottery to generate more funds? Helb can also consider investing in real estate or other fixed income earning securities like Treasury bonds and bills to finance its operations and provide it with a stable income base. Paul Gesimba, Nairobi

Thank you Paul for the question, this portrays your appreciation of Helb funding gaps. You are on point on the fact that Helb requires other sources of funding outside Treasury to be able to meet the ever growing demand. Unclaimed Financial Assets, National Lottery, Investments are some of the potential sources of funds we have been pursuing through our new external resource mobilisation strategy. We have made tremendous progress in some areas and have been able to mobilise over Sh1.5 billion from various strategic partners. However, some of the potential funding streams such as Unclaimed Financial Assets require legislative approvals and review of the existing legal framework. We are in the process of reviewing our Act and engaging more strategic partners and establishing impactful linkages to boost our external resources kitty. We therefore invite the general public, corporates, NGOs, county governments, foundations, high net-worth individuals and well-wishers to partner with Helb in empowering dreams of deserving Kenyans who desire to purse higher education. Visit our website www.helb.co.ke to see more on how you can get involved.