Written by Kelly Were
NAIROBI, Kenya — May 30, 2025
In a decisive move to curb ballooning loan defaults, the Higher Education Loans Board (HELB) announced plans to collaborate with police to trace and recover unpaid student loans from former beneficiaries.
Speaking before the National Assembly’s Public Investments Committee on Governance and Education, HELB CEO Geoffrey Monari revealed that the board is finalising a partnership with law enforcement agencies to locate graduates, both within Kenya and abroad, who are employed but have yet to begin loan repayments.
“This is not just about finance. It’s about fostering a sense of responsibility and patriotism among those who have benefited from the funds,” Monari said. “Compliance ensures we can support future generations from needy backgrounds.”
HELB, whose financial model is based on a revolving fund system—where recovered loans are reissued to new students—has seen its sustainability threatened by rising default rates.
“The fund’s core philosophy is simple: repay so others can benefit. But the growing number of defaulters is eating into that lifeline,” Monari told the committee.
While applauding the recovery initiative, committee members urged HELB to ramp up public outreach efforts through advertising, storytelling campaigns featuring real-life beneficiaries, and aggressive external fundraising beyond government allocations.
The crackdown follows years of noncompliance from thousands of past beneficiaries who ignored multiple warning notices. As a last-ditch effort, HELB introduced an 80% penalty waiver for defaulters willing to clear their balances in one lump sum—a move aimed at encouraging voluntary compliance.
“Settle your HELB loan in full and enjoy an 80% waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away,” read the March 24 notice from the board.
Despite the effort, many loan holders have pointed to unemployment as the primary cause of nonpayment, with growing calls for HELB to extend the post-graduation grace period to give job seekers time to get on their feet.
To encourage repayment, HELB reminded borrowers that they can start the process by dialing *642# or by logging onto the official HELB portal.
