In an intense quest to maximize HELB loan recovery, The Education Loans Board has collaborated with KCB to roll out a student smart card ahead of June 2015 deadline to discard the use of the bank accounts to access the loans from the institution.
Through the card, students will be in a position to not only pay for tuition fees but also pay for meals, accommodation and acquire pocket money. Student smart card will further see students access cash through KCB branches, Mtaani and MPESA agents anywhere in the country. The same will also be used as a photo card for student identification.
Over the years, the board has been unable to recall up to KShs. 11Billion from beneficiary students and universities with the performing loans equating to KShs. 14Billion.This is why the move is looking to maximize loan recovery, reduce non-performing loan, and promote access, equity and equality of opportunity for Kenyans pursuing higher education.
The move will help the board expand HELB services to other education institutions since the Card will have the ability to interface with HELB, the Universities’ systems and the approved banks.
KCB Group remains on the lead to offer cash lite solutions, to be innovative and improving consumer experience journey. One of the most valuable contributions the Bank is making is formalizing the financial system by supporting government efforts through products, services, technology and payments and strategic partnerships.
With the Banks’ reliable card business and countrywide reach of over 240 branches and over 10,100 agents, the Bank will be able to offer convenient means of availing the funds to the registered students in various tertiary institutions. This initiative hopes to enhance convenience, security, accessibility and efficiency as well as accountability process.
The initiative comes when government is targeting to fully automate its services and fee collection systems by the next financial year, which starts July, this year. It is aimed to ease service delivery and seal revenue leakages.