Amount employers will lose for not informing HELB about employees hired

Image result for images of loan default

The Education Cabinet Secretary Amina Mohamed speaking during the launch of HELB’s five-year strategic plan revealed that the Higher Education Loans Board will work with the police to hunt down 74,000 loan defaulters.

In a press release circulated on Friday, HELB declared that it would collaborate with the office of the Director of Public Prosecutions in their crackdown on perennial loan defaulters.

The state agency responsible for providing loans to students in pursuit of higher education put out the release in response to the public uproar over Amina’s statement on Wednesday, February 20, 2019.

Image result for HELB press release on friday 2019

The agency’s statement emphasised that loanees, who default on loan repayment, including those who are employed, shall be guilty of an offence and liable to a fine of not less than Ksh5,000 in respect of each loan deduction as per Section 15 (2) of the HELB Act.

In addition, the government body asserted that every employer shall be required to inform the board in writing within a period of three months upon the employment of any loanee, with none-compliance attracting criminal liability.

Under such instances, the employer will be deemed to be guilty and liable to a fine of not less than Ksh3,000 for each month that he/she fails to notify the board.

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