Structural Factors for Students’ Loans Recovery at the Higher Education Loans Board (HELB) of Kenya

Abstract

This paper focuses on structural factors for students’ loans recovery at the higher education loans board (HELB) of Kenya. The structural factors examined included penalty waiver, abandonment of projected interest in loans, listing loan defaulters in Credit Referencing Bureaus (CRB), loan collection procedures and government integrity compliance requirements. The study sought to find out the extent to which these factors affects the loan recovery performance at HELB of Kenya. This study adopted explanatory research design. Primary data was collected using self-administered questionnaire. The population comprised 337 members of the HELB staff members at the board head offices and auxiliary offices under government huduma centers (GHC) country wide. A sample of 60 staff members drawn from loans repayment and recovery section of HELB was selected using purposive sampling method. Factor analysis and multiple regression models were used for data analysis. The study found statistical evidence that loan collection procedures (t - value 3.883773), penalty waiver (t -value = 3.580933) and government integrity compliance (t-value -2.529348) significantly related to loans recovery performance. Conversely listing in credit reference bureaus revealed a weak significance (t-value 1.788982). The study however found no significant relationship between abandonment of projected interest (t value 0.125421) to loans recovery performance.