People who may have defaulted in repaying their student loans to the Higher Education Loans Board (HELB) now have a reprieve, but only for the next 30 days.
This is after HELB, on Tuesday, June 17, announced a whopping 80 per cent penalty discount when one pays their defaulted loans from June to July.
“Enjoy an 80 per cent penalty discount when you repay your loan in full between June and July 2025,” HELB announced.
However, the discount would only be valid for those who repaid their debt in full. Those willing to pay were advised to visit the HELB website through the USSD code (*642#), the HELB Mobile App or the HELB portal.
Also, HELB informed that those seeking to repay their debts could easily visit their offices at Anniversary Towers in Nairobi or visit Huduma Centres nationwide. For salaried loan applicants, one could easily pay their loan by obtaining an employer checkoff from their superiors.
The latest comes days after HELB had supposedly announced plans to engage police officers to track down loan defaulters and other beneficiaries.
HELB CEO Geoffrey Monari, while appearing before the National Assembly’s Public Investments Committee on Governance and Education, revealed that the board was finalising a partnership with law enforcement agencies to trace graduates, both locally and abroad, who were employed but had failed to start repaying their loans.
The move generated significant backlash, forcing HELB to release a statement disclosing there were no plans to send law enforcement to arrest loan defaulters.
In a statement on Saturday, May 31, the Loans Board distanced itself from reports purporting that it was planning to use chiefs to hunt the defaulters and their guarantors.
According to HELB, repaying the loan was one’s initiative, reiterating that it would not use escalatory measures, which included the arrest of defaulters, to recover its money.
Meanwhile, it comes after Monari singled out professionals in the private sector, notably accountants, doctors, lawyers, and engineers, as the highest loan defaulters, prompting the agency to pursue stricter recovery strategies.
Speaking during a breakfast interview on Citizen TV on Tuesday morning, Monari revealed that the trend of non-repayment was most prevalent among graduates who transitioned into private practice. He expressed concern over the rising number of beneficiaries failing to honour their loan obligations years after completing their studies.
To enhance loan recovery and ensure compliance, the CEO stated that the board would begin engaging professional bodies and employers to consider withholding the renewal of practising licences for individuals who fail to meet their loan repayment obligations.
On the flipside, Monari highlighted teachers as one of the most compliant professions when it comes to HELB loan repayment. According to him, over 44,000 teachers are actively servicing their loans, making them among the top-performing groups in terms of repayment.
