Individuals who have defaulted on their Higher Education Loans Board (HELB) student loans can now breathe a sigh of relief, as the board has announced a significant reduction in accrued penalties.
In a public notice on Tuesday August 5, the board stated that it would offer an 80 percent waiver to individuals who pay their outstanding arrears in full.
Individuals are urged to access the service via the USSD code *642#, the HELB mobile app or the HELB portal to find out more about the waiver and payment process.
Furthermore, employers have also been urged to step in and facilitate loan repayment for their staff through a check-off system, which can be accessed via a QR code provided in the notice.
"We’re slashing down those penalties so you can smackdown those arrears. Pay in a lump sum today and claim your waiver. Pay your loan arrears in a lump sum and enjoy a waiver of up to 80% on accrued penalties,” HELB stated.
HELB, which finances thousands of students in universities and tertiary institutions across the country, relies on loan repayment to sustain its continued funding.
The announcement comes days after the Education Cabinet Secretary, Julius Ogamba, in a statement on Thursday, July 31, confirmed that HELB will make the first disbursement of loans for first-year students on Friday, August 15.
Ogamba further said that the government would increase the allocation for HELB from Ksh36 billion to Ksh41 billion.
According to the CS, Ksh13 billion would go towards students’ tuition, while Ksh16.9 billion would be dispensed to the Universities Fund to support scholarships for qualifying students.
According to Ogamba, the funding increase to the board will be fundamental in ensuring that all students at higher levels do not encounter financial barriers in their pursuit of higher education.
Applications for HELB loans are currently ongoing until the end of this month for the students who sat for the 2024 Kenya Certificate of Secondary Education (KCSE) and were placed by the Kenya Universities and Colleges Central Placement Service (KUCCPS).
According to HELB, first-time applicants can use the Higher Education Financing (HEF) portal to apply for the loans, while continuing students can use the HELB mobile app or USSD code *642#.
''We have now opened the portal. The 2025-2026 First Time and Subsequent Applications for Undergraduate & TVET Loans & Scholarships are now open. Apply via www.hef.co.ke for first-time applicants or dial *642# or HELB-App for continuing students,'' HELB said.
