HELB imposes penalties on non-compliant employers and loan beneficiaries
HELB imposes penalties on non-compliant employers and loan beneficiaries
The Higher Education Loans Board (HELB) has announced new penalties for employers and loan beneficiaries who have failed to comply with student loan repayment rules.
Under the new enforcement laws, HELB said employers who do not disclose staff with HELB loans or fail to remit deductions will now be fined Ksh3,000 per employee per month.
The loans board on Friday, March 20, said the move was part of its broader strategy to recover over Ksh100 billion in outstanding debt.
The penalty will be backdated to the employee’s date of hire, significantly increasing potential liabilities for non-compliant companies.
At the same time, loan beneficiaries who have not been servicing their loans will incur a monthly penalty of Ksh5,000.
HELB revealed it is currently pursuing more than 20,000 companies and about 360,000 beneficiaries who are in default, citing widespread failure to adhere to a 2025 directive.
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The 2025 directive placed responsibility on employers to support the board’s efforts on loan recovery. However, HELB now says most employers have yet to adhere to it.
Employers were required to submit employee records for verification, deduct 15 per cent of salaries from staff who benefited from HELB loans, and remit the funds directly to the board.
HELB emphasised that there are no plans to write off any unpaid loans, reiterating its commitment to recovering funds to sustain financing for future students.
Employers can use the dedicated HELB Employer Portal to manage their obligations.
This portal simplifies the process and allows employers to:
- Register: New organisations 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.
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