(KDRTV) – The BBI report has suffered a major blow after the Higher Education Loans Board (HELB) rejected proposals to give beneficiaries a 4-year grace period before repaying their loans.
According to HELB CEO Aaron Ringera, the proposal is unsustainable and will adversely impact both the board and beneficiaries. He warned that the measures will force the board to either reduce the amount awarded to students or the number of beneficiaries.
Hello guys I am requesting for you to please help me raise 1,041,000 bonga points to help pay off my HELB loan. If you can help please send your bonga points to 0743266882. If you may not have bonga point please RT/share this. My helper may be on your TL 😀. pic.twitter.com/mFIOxYmLQo
— Daughter of Muthoni (@MuthoniMaryanne) October 30, 2020
The CEO was addressing the Conference on State of University Education on Sunday, November 1. The virtual conference was organized by the Commission for University Education.
Ringera insisted on the need to come up with other measures to cope with the current challenges affecting both the board and students.
The same people who promised you that they will make sure graduates have a full paid internship after they graduate are the same people now telling you that youths deserve 4 years grace period to pay HELB. Youths don't need grace periods, they need jobs to repay the loan bwana.🙄
— BRAVIN YURI (@BravinYuri) November 2, 2020
The highly controversial BBI report has proposed to amend the HELB bill to give beneficiaries four years after graduation before they can start repaying the loan. Currently, HELB benefactors are required to start repaying their loans one year after graduation.
In what, analysts described as baiting desperate Kenyan graduates, the report launched last week, also proposes that jobless graduates should be exempted from paying interests on the loans.
Read Also: HELB Forced to Write Off Ksh 55m Bad Debt
It is not clear how President Uhuru Kenyatta will approach the issue. Uhuru had clearly hoped that the youth will support the BBI due to such proposals.
“7 year tax break and 4 year HELB grace period. You see I care about the youth.” pic.twitter.com/iZv4OcGB3J
— Übermensch (@Trackmann) October 30, 2020
The BBI also proposes a seven-year tax haven for new businesses. It seems this proposal could be rejected by Treasury because it is unsustainable.