Former presidential aspirant Mwalimu Abduba Dida has advised that the government should treat Higher Education Loans, HELB given to university students as grants and not loans.
This is after it emerged that the state has written off Ksh 24.2 billion given to the struggling Kenya Airways after recording massive losses of Ksh. 7.5 Billion in the last financial year.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red.
But the airline has remained in the loss-making territory for the last five years.
This made it the biggest recipient of write-offs.
According to Abduba Dida, the state should stop chasing unemployed university students to repay their loans.
HELB board in April reported that about 67,093 former university students owe the agency Sh6.5 billion in non-performing loans.
We are not making losses nor profit. We just don’t have income. If KQ is in business and not able to meet it’s obligations, how will a Kenyan who is not in business nor in employment manage to repay a loan plus 5000 monthly penalty?
— Andrew K S (@IvanASK7) May 4, 2019
This country has no future since ignores it’s unemployed youth who form the backbone of the economy,instead nurturing beggars who rely on hand-outs.
— Titus Tegaa (@titus_tegaa) May 4, 2019