President Uhuru angers jobless university graduates after he did this

Wednesday, 28 October 2015 – President Uhuru Kenyatta has declined to sign into law a bill that would have cushioned jobless university graduates from the high monthly penalties meted unto them by the Higher Education Loans Board (HELB).

In a communication to the parliament after he failed to append his signature on the bill, which had been sponsored by Kiharu MP Irungu Kangata, the President claimed that getting rid of the high penalties would weaken HELB’s loan recovery mechanism. 

HELB currently charges defaulters, including those who issue notification that they are unemployed, an automatic KSh 5,000 monthly fine.

MPs had passed the Higher Education Loans (Amendment) Bill in August saying the penalties were inconsiderate to those who failed to get jobs after their studies noting that the unemployment rate in Kenya is at 70% among the youth.

However, the President seems to be of the opinion that high, inconsiderate penalties are a motivation for University graduates to look for employment.

“The proposed amendment is clearly objectionable as it will, no doubt, weaken the board’s loan recovery mechanism. This is because loanees will no longer feel pressured to complete their studies and enter into gainful employment so they can start servicing their loans,” Uhuru’s memorandum to parliament read.