Good News as Court Rules Out Interest Rate for HELB Loan Beneficiaries
Good News as Court Rules Out Interest Rate for HELB Loan Beneficiaries
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Higher Education Loans Board (HELB) loan beneficiaries who missed loan payments can now breathe a sigh of relief after the High Court in Nairobi declared the interest rates charged to be unlawful.
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This full decision, which was delivered on Friday, August 19, states that the Board is not allowed to reclaim interest that is greater than double the amount advanced.
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Part of the judgement stated, “A declaration hereby issues that the respondent is not entitled to collect from the petitioners or its loanees an amount exceeding double the amount advanced in violation of the in duplum law”
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According to Benjamin Njeru, the attorney who handled the matter on behalf of the three petitioners, if a
beneficiary borrows Ksh100,000 from HELB,then they are only entitled to repay a maximum of Ksh200,000 only.
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