HELB to Enlist Police in Tracing Loan Defaulters Amid Rising Defaults
The Higher Education Loans Board (HELB) has unveiled an aggressive new strategy aimed at tackling persistent student loan defaults—by formally partnering with police officers to trace and recover funds from defaulters, including those living abroad.
Speaking during a session with the National Assembly’s Public Investments Committee on Governance and Education on Friday, May 30, HELB CEO Geoffrey Monari announced that the Board is in the final stages of establishing a formal collaboration with law enforcement agencies. The move is part of a wider initiative to strengthen the agency’s financial standing through enhanced recovery of outstanding student loans.
“This is not just about finance,” Monari told the committee. “It’s about fostering a sense of responsibility and patriotism among those who have benefited from the funds. Compliance ensures we can support future generations from needy backgrounds.”
HELB’s loan program has supported thousands of students over the years, relying on a revolving fund model in which repaid loans are issued anew to incoming students. However, Monari expressed deep concern about the rising number of graduates who have failed to honor their repayment obligations, thereby placing the future of the fund at risk.
“At the heart of HELB’s operations is the philosophy of the revolving fund – recovering loans to re-lend to aspiring students. However, the defaulter rates continue to erode the fund’s sustainability,” he said.
According to Monari, the new approach is being taken as a last resort after repeated efforts to engage defaulters through soft reminders and generous incentives failed to yield significant results. One such effort was a public notice issued on March 24, 2025, in which HELB offered an 80 percent waiver on accrued penalties for borrowers who chose to clear their loans in a lump sum.
“Settle your HELB Loan in a lump sum and enjoy an 80 per cent waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!” read the notice, which also encouraged borrowers to dial *642# on their phones or visit the HELB portal to begin repayments.
Despite these initiatives, thousands of past beneficiaries remain unresponsive. The decision to engage law enforcement now signals a significant escalation in HELB’s enforcement efforts.
While the Board’s action has been met with support from some quarters of government, it has also sparked criticism and concern from borrowers and legislators alike. Members of Parliament urged the Board to first intensify public engagement and awareness campaigns to educate Kenyans on the importance of loan repayment. They also encouraged HELB to adopt more creative solutions, such as showcasing real-life success stories from beneficiaries who have repaid their loans, in order to inspire a culture of compliance.
Additionally, MPs suggested that HELB explore alternative funding sources beyond government capitation, including public-private partnerships and donor engagement, to reduce over-reliance on loan recoveries alone.
Critics of the enforcement strategy argue that HELB’s crackdown fails to consider the broader economic challenges facing many Kenyan graduates, including high rates of youth unemployment and underemployment. A significant number of borrowers have cited lack of stable income as the main reason for defaulting, and are now appealing to HELB to extend the grace period for loan repayment, particularly for recent graduates still seeking employment.
For its part, HELB maintains that it remains committed to fairness and flexibility but insists that deliberate defaulters—especially those known to be employed—must be held accountable.
“As we move forward, we want to strike a balance between empathy and responsibility,” Monari said. “But we also have to safeguard the future of this fund, which has transformed lives and enabled access to higher education for countless Kenyans.”
The Board has yet to announce when the police involvement will begin in earnest, but confirmed that mechanisms are being put in place to allow law enforcement agencies to trace defaulters both within the country and internationally.
With student loan debt now a growing national concern, HELB’s latest move is likely to set a precedent for how public financial obligations are enforced in Kenya—raising critical debates about personal accountability, social equity, and the state’s role in ensuring access to education.
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HELB to Enlist Police in Tracing Loan Defaulters Amid Rising Defaults