The Higher Education Loans Board (HELB) has announced an 80% penalty waiver for Kenyans who have defaulted on their student loans, offering a lifeline to thousands of borrowers and a boost to the country’s higher education financing efforts.
In a notice issued on Tuesday, June 17, HELB confirmed that the waiver, dubbed “Be the Reason Someone Believes,” targets penalties accumulated from delayed loan repayments. However, to benefit from this limited-time offer, defaulters must clear their outstanding balances between June and July.
HELB urged borrowers to seize the opportunity and settle their loans within the two-month window. The board emphasized that funds recovered through the waiver initiative will be redirected to support students currently joining or preparing to enroll in universities.
“Behind every HELB loan repayment is a student waiting to rise! That HELB loan opened the door to your education. Now, your repayment can light the path for another dreamer,” read part of the board’s public appeal. “Support a future. Repay with purpose. Repay today. Make your impact count.”
This campaign comes at a time when HELB is ramping up efforts to recover Ksh40 billion from more than 316,000 defaulters. Appearing before the National Assembly’s Public Investment Committee on Governance and Education last week, HELB CEO Geoffrey Monari urged lawmakers to grant the board stronger legal powers to boost its recovery efforts.
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Monari revealed that while over 780,000 students have benefited from HELB loans since its inception, only about 464,000 are currently making repayments. Even among these, the board recovers just Ksh66 million, an amount he described as insufficient to sustain HELB’s revolving fund.
“Only Ksh66 million is being repaid by 464,000 students, typically over a 10-year period,” Monari told MPs.
“Meanwhile, the 316,000 defaulters have not started repayments. If we can get them to start repaying, it would significantly improve cash flow to support current students.”
He further disclosed that 51,594 beneficiaries who graduated over two decades ago owe HELB a combined Ksh8 billion.
Monari also singled out lawyers and engineers as some of the poorest performers in loan repayment. Of the 23,000 lawyers funded, only 2,644 have repaid their loans. Among 24,883 graduate engineers, just 1,594 have completed repayments, and only 894 are actively paying.
Teachers, on the other hand, were praised for being the most consistent in servicing their loans.
How To Repay HELB Loans
Borrowers hoping to benefit from the 80% penalty waiver can repay their HELB loans through several convenient channels:
- *Dial USSD code 642#
- Use the HELB Mobile App
- Employer check-off system (for those in salaried employment)
- Log in to the HELB Portal at www.helb.co.ke
For any questions or further support, borrowers can call HELB at 0711 052 000 or email the team at [email protected].
In-person assistance is also available at HELB’s main office in Anniversary Towers, Nairobi, and across 28 HELB desks and Huduma Centres nationwide.
