HELB INTRODUCES SMART CARD TO GAP MISUSE OF LOANS BY STUDENTS

By Maritim Evans

The Higher Education Loans Board (Helb) has introduced a smart card as a deterrent to university students from spending part of their school fees money for leisure and other luxuries.
According to Helb Chief Executive Officer Charles Ringera the smart card has 10 different items and cannot be used by students either to buy beer or purchase other goods from supermarkets or bookshops because it will be locked and must be swiped by the chief finance officers at different universities.
This comes at a time when students have been reported to be spending money in a manner that is not helpful to them. Helb loan was meant for students who emanate from poor families to finance their education. This has never happened since anyone can get Helb loan. In fact students from well endowed families who are able to pay fees are applying the loan secretly without the knowledge of their guardians or parents. Their parents are paying school fees and giving them pocket money, but these students are applying for the loan to use in drinking or entertaining themselves.

Helb CEO Charles Ringera. PHOTO/COURTESY

As if the smart card is not enough, Helb board has also decided to use Nyumba Kumi Units to recover loan from those who have completed education and they have not paid back their loan.  
 Helb CEO Charles Ringera says it will be easier to recover the money from the beneficiaries using Nyumba Kumi units because they are based in villages and they know all university students from their respective areas.
 “Money being given to university students by Helb is a revolving fund and should be repaid by the beneficiaries to enable their other colleagues benefit from the same,” said Ringera.
It may not be business as usual for the loan defaulters since the villagers will be able to identify those who benefitted from the loan and they are refusing to pay for others to benefit from the same.
The plan to introduce Nyumba Kumi Units to recover the loan comes at a time when Helb is under pressure in financing loan applicants. It is not that easy for them nowadays to finance students who have constantly staged demonstration to demand for the release of funds.
Helb loan has reduced from the initial Ksh45000 minimum to Ksh35000 minimum. Students have been complaining for this since Helb loan is reducing at a time when the cost of living is escalating.
The students are waiting to see the new changes in recovering loan and the introduction of smart card to gap misuse of the money by students.