The Higher Education Loans Board (HELB) has urged Kenyan employers to ensure that they remit loan deductions from the salaries of their employees who have loans with HELB.
In a recent notice, HELB outlined the main obligations that employers must fulfil in order to avoid penalties. The board emphasised that employers must inform HELB whenever they hire a new employee who is a student loan recipient. This is a crucial first step in ensuring that the repayment process begins smoothly for the loan recipient.
Employers must also deduct the correct monthly repayment amount directly from the employee's salary. This helps to ensure timely and consistent repayments.
According to HELB, these deductions must then be paid to the board by the 15th of the subsequent month.
According to the board, failing to comply with any of these three obligations can result in financial and legal penalties.
Employers can be charged a penalty of 5 per cent of the unpaid amount for every month that a remittance is late. The board also stated that failing to inform HELB of a new employee with a loan can result in criminal charges.
"If an employer fails, without reasonable excuse, to notify the Board that he has in his employment a loanee, that employer shall be guilty of an offence and liable to a fine of not less than three thousand shillings for each month that he fails to notify the Board of such employment," Section 17 of HELB Act reads.
To assist with these tasks, HELB has created an online portal for employers. This portal allows employers to register their company, report new employees with loans, view the amount to deduct from each employee's salary and send payments to HELB.
How Employers Can Ensure HELB Compliance
Employers can use the dedicated HELB Employer Portal to manage their obligations.
This portal simplifies the process and allows employers to:
- Register: New organizations can register for the first time on the portal.
- Report new employees: Employers can easily notify HELB of new employees who are student loan beneficiaries.
- Process deductions: The portal provides access to a billing schedule, which helps employers determine the correct monthly deduction amount for each employee.
- Remit payments: Employers can make the required payments to HELB through secure and prescribed channels available on the portal.
