The Higher Education Loans Board (HELB) has begun enforcing mandatory salary deductions for Kenyans employed in the private sector who have defaulted on their student loans.
According to several private-sector employees, HELB, in collaboration with the Kenya Revenue Authority (KRA), has begun contacting employers to inform them of the repayment status of their staff and to facilitate monthly deductions for defaulters.
In a memo seen by the Kenya Times, HELB instructed employers to implement the deductions starting December 2025, in line with the HELB Act of 1995.
“Please facilitate the implementation of the monthly deductions w.e.f Dec 2025, pursuant to the HELB Act of 1995,” said the Authority.
Employers were also told that payments must be made by the 15th of the following month and that a completed Remittance Form must be uploaded to the employer portal: www.helb.co.ke/employer-portal.
HELB Begins Mandatory Salary Deductions from Loan Defaulters
The memo also attached a repayment plan for the deductions, which will vary depending on the employee’s salary.
HELB stressed that any queries regarding the loans should be directed to the Board via [email protected] and not to employers.
The move comes months after HELB CEO Geoffrey Monari announced that the Board would adopt new strategies to trace defaulters through employer engagement.
“But we’re not sitting back. We’re tackling this through employer engagement, outreach to past beneficiaries of the scheme, smarter policies, and stronger accountability,” said the CEO.
According to the CEO, as of June 30, 2025, 67.5% of the loan book was performing, leaving about 32.5% or roughly 256,000 Kenyans with Sh32 billion at risk of default.
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Monari highlighted repayment incentives, noting that borrowers who repay their loans in a lump sum can receive an 80% penalty waiver.
“We’re confident that, together with borrowers and employers, we can improve repayment rates through smarter policies and stronger accountability,” he said.
How to Repay Your Loan
Borrowers can check their outstanding balances online through the HELB portal, by phone, or at a HELB office.
Repayments can be made via bank deposits, mobile money (M-PESA), online payments, or salary deductions. Private-sector defaulters may now also have deductions applied directly from their salaries.
Repayment typically begins six months after graduation or leaving school, with flexible arrangements available for those unable to pay the full amount at once.
About the Loans Board
The Higher Education Loans Board (HELB) is a statutory body established in July 1995 by the Higher Education Loans Board Act, Cap 213A. It is a state corporation in the Ministry of Education.
The Board is domiciled and operates within the Republic of Kenya. It is governed by the Board of Directors and headed by the Chief Executive Officer and Board Secretary, who is responsible for general policy and strategic direction of the Board, and the Secretary to the Board of Directors.
Also Read: How to access your HELB Compliance Certificate
Its mandate is to solicit and provide financing (through loans, bursaries, and scholarships) to Kenyan students pursuing higher education at recognized public and private universities and TVET (Technical, Vocational Education and Training) institutions, both within and outside Kenya.
A crucial part of its mandate is the recovery of the funds loaned out to past beneficiaries.
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