40 blue-chip firms face penalties over Helb loan defaults

40 blue-chip firms face penalties over Helb loan defaults

40 blue-chip firms face penalties over Helb loan defaults

penalty for non remittance of helb loan in time - The law requires employers to deduct and remit to Helb repayments from staff who are beneficiaries of the student loans.
Investigations by Helb have uncovered companies that have either failed to deduct the loan repayments from their staff, or failed to remit the amounts to the board.
“The law allows us to fine employers who have continued to engage employees who benefited from the loan facility and are not repaying at the rate of Sh3,000 per month for each worker,” said Charles Ringera, the Helb chief executive officer in an interview.
Helb says it will start prosecuting about 37 companies in June for their failure to facilitate employee loan repayments.
The firms face penalties for failing to effect monthly deductions from their employees or doing so but failing to remit to HELB in time.

Eight multinationals, seven State corporations and 18 manufacturing firms are among the firms set to be arraigned in court in just over a month, according to Helb.
One company listed at the Nairobi Securities Exchange (NSE), a media house and a Sacco are also in Helb’s cross hairs.
“One of the most discouraging things is that we have blue chip companies who owe us money. These are companies held in high regard and would (be expected) to uphold ethical behaviour,” added Mr Ringera.
Helb had collected Sh2.3 billion as at the end of March.
In the financial year 2012/2013 Helb collected Sh3.25 billion and it projects that this amount will grow to Sh3.5 billion this financial year.
Since inception in 1995, the board has disbursed over Sh44 billion to about 400,000 beneficiaries but has been plagued by high default rates.
At the moment, about 68,000 loanees owe the institution approximately Sh9.8 billion


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