HELB Confirms Compliance with ‘In Duplum’ Rule Following Landmark Court Ruling
The Higher Education Loans Board (HELB) has issued a public statement reassuring borrowers that it fully adheres to the ‘in duplum’ rule, following a landmark High Court judgment that favoured student loan recipients.
In a statement released on Wednesday, the statutory lender emphasised that all HELB accounts are managed in line with the legal framework established by the courts.
“Following the High Court judgement in Mugure & 2 Others v HELB (2021), we wish to clarify that HELB fully complies with the ‘In Duplum’ Rule. This means that all the HELB loan accounts continue to be managed in line with the judgment,” the statement read.
The board reiterated its commitment to fair and transparent loan management. “HELB remains committed to fair, lawful, and transparent loan management for all alumni and beneficiaries. For assistance, please reach out to us via our official customer support channels and contacts,” it added.
The High Court ruling stemmed from a petition filed on 23 March 2021 by Kenyan students who had borrowed funds for their undergraduate education. The petitioners alleged that HELB was imposing excessive interest and penalties, which often caused debts to more than double the principal amounts borrowed.
Court documents reveal several striking cases. One petitioner, a youth living with a disability, borrowed Ksh 82,980 in July 2004 at a 2% interest rate. By July 2016, the debt had ballooned to Ksh 540,464.10. Another borrower took a Ksh 146,090 loan in July 2016, which had grown to Ksh 335,207.28 by March 2021. A third borrower’s Ksh 135,000 loan from July 2016 had increased to Ksh 336,573.83 by February 2021.
The petitioners argued that such accumulation of interest violated the in duplum rule—a constitutional consumer protection principle in Kenya that caps interest on non-performing loans at the original principal amount. Under this rule, once the accrued interest equals the principal, no further interest can be charged.
They further claimed that borrowers with non-performing loans were being denied clearances needed for job applications, effectively blocking access to employment opportunities in both the public and private sectors.
The High Court ruled decisively in favour of the petitioners, quashing HELB’s practice of charging penalties that caused debts to exceed twice the original loans. HELB had contended that the in duplum rule did not apply to it, arguing that it was a statutory lender and not a bank. The Court dismissed this interpretation, confirming that the rule applies to all lenders, including statutory entities.
The ruling ensures that borrowers will no longer be required to pay more than double the principal amount of their loans, marking a significant victory for consumer rights in Kenya’s higher education sector.
Also Read: Gachagua Aims Sharp Dig at Ruto Over Marriage Advice to Young Kenyans
HELB Confirms Compliance with ‘In Duplum’ Rule Following Landmark Court Ruling