The Higher Education Loans Board (HELB) has written off Ksh347.05 million in student loans following the discovery of 2,605 late beneficiaries in the 2024/2025 financial year. The board credited this achievement to its partnership with Civil Registration Services, whose intervention has significantly improved accuracy and reliability in tracing deaths among beneficiaries.
This achievement was one of significant milestones HELB presented before the Education Committee of the National Assembly, noting the agency’s success in cleaning up its loan book and enhancing recovery.
In a strong performance during the year, HELB recovered Ksh5.21 billion of student loans, a record 11% boost from last financial year’s Ksh4.71 billion recovery. Strengthened collaboration with the Kenya Revenue Authority (KRA) and the Public Service Human Resource Information System (HRIS) enabled HELB to trace 11,600 loan beneficiaries, bringing in an extra Ksh42 million.
The board also intensified field operations through employer audits and inspections, uncovering 17,647 defaulters. These efforts resulted in Ksh285.21 million being recovered through enforced payroll deductions.
HELB’s shift to digital service delivery is also bearing fruit. The board rolled out self-service portals for students and employers, allowing users to access loan statements, make online repayments, and download compliance or clearance certificates at their convenience.
According to the board, these digital tools have greatly improved the overall user experience, cut down on physical visits to HELB offices, and made service delivery more transparent and efficient.
“These platforms have significantly improved user experience, reduced walk-in traffic, and enhanced transparency and efficiency in service delivery,” HELB noted.
HELB to Roll Out Flexible Repayment Options
Looking forward to the 2025/2026 financial year, the board will accelerate loan recovery with several ambitious programs. One of these is implementing an Income-Contingent Repayment (ICR) framework for aligning repayment responsibilities with the earning power of a borrower, less burdensome and more affordable repaying for low-income earners.
HELB further intends to tighten up compliance by linking loan repayment with professional licensure and government procurement. In this proposal, defaulters can be excluded from securing government contracts or license renewal until they clear their balances.
To further expand coverage, HELB will offer flexible payment terms including daily and weekly instalments, targeting the informal sector and gig economy workers with irregular incomes.
In a bid to collect more money from Kenyans living abroad, HELB is ramping up diplomatic engagement, targeted engagement, and foreign partnerships to help boost diaspora loan repayment.
These efforts are part of an overall plan to make the student loan system more efficient, equitable, and financially sustainable.
