Up to 67,000 HELB defaulters from 1975 risk being listed with Credit Reference Bureaus for failing to comply with HELB terms and conditions.
“In line with the provision of regulation 50 (1) (a) of the Credit Reference Bureau Regulations, financial institutions are required to list both positive and negative performance of all loans,” HELB said.
According to HELB, defaulted loans totalling to approximately Sh6.5 billion are affecting further disbursement to deserving students.
“A total of 156,198 accounts valued at Sh24.2 billion are repaying their loans while 67,093 loanees holding Sh6.5 billion are in default. The loan portfolio is performing at 70 per cent,” said Helb.
Reports however indicate that nearly 25,000 defaulters cannot be traced hence raising concern over the boards policy as far as future recoveries is involved.
Not so long ago, students hit back at former education CS Amina Mohammed after she announced that HELB would engage police service in ensuring defaulters are sent to prison.
The feeling among most Kenyans is that employment is the best strategy to avoid defaulting of loans.