The National Assembly’s Committee on Education raised concerns on July 15, over the growing number of graduates with unpaid loans at the Higher Education Loans Board (HELB), amounting to KSh33.2 billion.
The concerns came during an oversight visit to HELB offices in Nairobi, and the visit focused on the implementation of the New Higher Education Funding Model (NFM among others.
HELB reports over 293000 loan defaulters
HELB Chief Executive Officer Geoffrey Monari told MPs that the board had recorded 1.03 million matured loan accounts.
Out of these, 293,122 accounts are non-performing, with a total value of KSh33.2 billion. He said HELB is grappling with over KSh15 billion in defaulted loans, which is affecting its ability to support ongoing and new students.
Monari attributed the defaults to unemployment among graduates and challenges in tracking defaulters, especially those who have relocated or are working in the informal sector.
Also Read: HELB Opens Application Portal for KMTC Students; How to Apply
“Loan recovery remains a challenge because many of our beneficiaries are not formally employed, making it difficult to trace and recover funds,” said Monari.
Board promises reforms
Committee members demanded explanations on the measures HELB is putting in place to recover the loans and improve accountability.
They also urged the board to improve communication and transparency in the funding model to prevent confusion among students.
HELB Board Chairman Hon. Ekwee Ethuro, who also appeared before the committee, defended the board’s efforts, stating that strategies are in place to enhance recovery and review the Means Testing Instrument.
Also Read: HELB Opens Loan and Scholarship Application for 2025/26 Students
The MPs said they will continue monitoring HELB’s operations and push for policy adjustments that ensure the sustainability of higher education funding in Kenya.
The oversight visit comes at a time when thousands of students are waiting for the disbursement of government-sponsored loans and scholarships under the revised funding model introduced in 2023.
MPs question the effectiveness of the MTI tool
“The Committee on Education this morning conducted an oversight visit to the Higher Education Loans Board (HELB), on the implementation of the New Higher Education Funding Model (NFM), loan recovery challenges & status of budget implementation,” confirmed the committee in their public statement.
Education Committee, chaired by Tinderet MP Julius Melly, questioned HELB’s leadership on the effectiveness of the Means Testing Instrument (MTI), a tool used to assess eligibility for student loans and scholarships.
Melly said the model had triggered confusion and anxiety among university applicants and their families.
“One of the issues we want to hear about is the university funding model and the means testing instrument. It is giving Kenyans sleepless nights,” said Hon. Melly.
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