Kenya to track student loan defaulters

Authorities in Kenya say they will launch an operation to track 74,000 people who have defaulted on student loans, privately-owned Daily Nation reports.

The Higher Education Loans Board (Helb), a state agency, seeks to recover some 7.2bn Kenya shillings ($72m;£55m).

Education Minister Amina Mohamed said on Wednesday that the ministry will work with police to track the defaulters.

“We are also going to partner with our law enforcement agencies to track down those holding jobs and yet are reluctant to stand up to be counted as responsible and patriotic citizens who honour their debts,” she said.

The head of Helb, Charles Ringera, said the agency will work with the foreign ministry to track defaulters living outside the country.

Ms Mohamed said the annual Helb student loan budget had grown from $45m financing 110,000 students in 2012 to $109m for 250,000 students in the 2017/18 financial year.

She said 53% of Helb budget is funded by the government with loan recovery covering the rest.

People who borrow money from Helb are expected to start repaying after they graduate. BBC News