NAIROBI, Kenya, April 20 – One individual has ignited a legal proceeding against the Higher Education Loan Board (HELB) over illegally increasing a pending loan.
In a letter directed to the board dated March 4, 2024, Muriithi Thomas Mwiraria, through his advocate Kelvin Biwot, claimed that HELB had increased his loan from Sh165,000 to Sh705,000, which is against the legal directions.
“His arrear currently stands at ksh 705,000/- which is a shocking increase of kshs 540,000/- from his initial obligation. His debt has increased more than 4 times-a sickening fact,” he stated.
Muriithi has urged the board to revise the amount by removing the exorbitant fee and charges.
Muriithi filed a statement of claim at the Small Claims Court at the Nairobi Milimani Court on April 9th.
“You are aware that the law on this issue forbids you from charging more than double the initial amount interest and penaltie included.The claimant is aggrieved as he is paying more than he what he should,” he stated.
Furthermore, Muriithi claims that the debtor has subjected him to frustration despite his adhering to a repayment schedule that is being facilitated by his current employer.
