HELB announces 80% penalty waiver to defaulters who pay in lump sum
HELB) has intensified its efforts to recover billions in outstanding student loans with a new offer targeting defaulters through steep penalty waivers.
The Higher Education Loans Board (HELB) has intensified its efforts to recover billions in outstanding student loans with a new offer targeting defaulters through steep penalty waivers.
In an announcement made on Wednesday, July 16, HELB revealed that beneficiaries would enjoy an 80 per cent waiver if they paid their outstanding balances in lump sum payments.
“Settle your HELB loan with ease! Pay your balance in a lump sum today and enjoy up to 80% waiver on accrued penalties,” HELB revealed in its statement.
HELB, however, did not disclose the duration of the offer, suggesting students had time to take advantage of the waiver.
The fresh initiative is part of a broader recovery campaign by HELB, following reports that the board traced and re-engaged over 17,000 defaulters, leading to the recovery of KSh5.2 billion within 12 months.
In March, HELB issued a seven-day ultimatum to defaulters, warning that continued defaulting would eventually lead to action against their guarantors.
These recovery measures would entail tracing graduates through various channels, including graduation lists, employers, and government databases for former students who had gained employment as civil servants.
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Regarding HELB operations, CEO Charles Ringera revealed that the board was adopting a more data-driven approach, leveraging government-backed tracing tools and partnerships with financial institutions to locate and recover funds from borrowers, both in Kenya and abroad.
On Tuesday, Monari also hinted at a looming crisis in the higher education sector, confirming a significant financial shortfall for student loans this year.
HELB reportedly received Ksh26 billion for the 2025/2026 financial year, far short of the Ksh48 billion the board says is needed to provide loans to students from low-income households pursuing higher education.
“We paid upkeep for some, but not tuition. Second semester is worse, we haven’t paid tuition at all,” Monari noted. “Universities and TVETs are bleeding. We avoided protests, but the money is simply not enough.”
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