The Higher Education Loans Board (HELB) has issued new guidelines clarifying loan repayment policies for unemployed graduates and Kenyans working in informal businesses. The directive addresses the issue of repayment when individuals lack formal employment.
The policy states that graduates without formal employment can apply for a deferment of loan repayments. This applies to those who are currently unemployed or engaged in informal economic activities. The board emphasized that the deferment is temporary and requires regular updates on the individual’s employment status.
This comes after several months of public concern over the financial burden on graduates. Many Kenyans have struggled with the pressure of repaying loans while facing economic instability. The new directive aims to provide relief during uncertain times.
The policy follows a series of discussions between HELB and financial institutions. It reflects a broader effort to support graduates in the face of rising unemployment and economic challenges. The board has also encouraged borrowers to communicate regularly to avoid penalties.
The move is part of a growing trend of financial institutions adjusting their policies to accommodate economic hardship. It highlights the increasing need for flexible repayment options in a volatile job market.
