HELB Issues Fresh Warning to Employers Over Delayed Staff Loan Remittances
HELB has called on Kenyan employers to strictly follow the rules that require them to deduct and remit loan repayments from employees’ salaries.
In a public notice, HELB outlined employer responsibilities to ensure smooth repayment of student loans and avoid penalties. Employers must notify HELB whenever they hire an employee who is a loan beneficiary, so repayments start immediately.
In addition, companies must deduct the correct repayment amount from each employee’s salary and remit the deductions to HELB by 15th of the following month.
Failure to meet any of these requirements will attract heavy penalties. Employers who delay remittances will be charged 5% of the outstanding amount for every month the payment is late. Those who fail to disclose the hiring of a loan beneficiary will face criminal charges.
According to Section 17 of the HELB Act:
“If an employer fails, without reasonable excuse, to notify the Board that he has in his employment a loanee, that employer shall be guilty of an offence and liable to a fine of not less than three thousand shillings for each month that he fails to notify the Board of such employment.”
To make it easier for employers to comply, HELB has launched an Employer Portal where you can:
- Register your company for the first time.
- Declare new employees with HELB loans.
- Get a billing schedule to determine repayment deductions.
- Remit payments securely through the system.
The board says strict compliance will protect employers from penalties and ensure sustainability of the student loan fund.
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HELB Issues Fresh Warning to Employers Over Delayed Staff Loan Remittances