High Court bars HELB from imposing high interests, penalties on its beneficiaries
High Court has stopped the Higher Education Loans Board from imposing interests and penalties on its beneficiaries that exceed the principal amount borrowed, saying it is unconstitutional.
This comes after Justice Alfred Mabeya ruled in favor of three petitioners, Ann Mugure, Davis Nguthu, and Wangui Wachira, who argued that the interest rates and penalties were exorbitant and made it difficult for them to repay their loans.
“A declaration hereby issues against the respondent (Helb) that by imposing interest amounts and penalties or fines that exceed the principal amount, the respondent is in contravention of Article 43 (1) (e) and (f) and Article 27 of the Constitution of Kenya,” he stated in his judgment.
IMAGE: Student loan applicants at the Higher Education Loans Board offices in Nairobi on September 19, 2014.FILE PHOTO | SALATON NJAU | NMG
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