HELB Issues Fresh Notice to Employers Ahead of August Loan Remittance Deadline
The Higher Education Loans Board (HELB) has issued a fresh reminder to employers across Kenya to ensure employee loan deductions are remitted by the 15th day of every month, as the board steps up efforts to recover outstanding student loans.
In a notice issued on Friday, August 14, HELB reminded employers that they are required to deduct the amounts specified under each beneficiary’s monthly repayment rate and forward the funds to the board within the prescribed deadline.
“Ensure all HELB loan deductions are remitted by the 15th of every month to maintain timely compliance,” the board stated.
The latest directive places renewed attention on employers, who play a key role in the recovery of HELB loans from beneficiaries whose repayments are deducted directly from their salaries, wages or other remuneration.
Employers given step-by-step remittance instructions
HELB directed employers to upload their remittance lists through the HELB Employer Portal before proceeding with payment.
Employers are required to open the Remittance tab, download the CSV template and enter the relevant employee and repayment information. The completed file must then be uploaded to the system for processing.
After submission, employers must verify and confirm the details before generating an electronic payment slip.
The system automatically excludes employees whose HELB loan accounts have already been fully cleared.
HELB further warned employers to make payments using the exact amount indicated on the generated electronic payment slip to ensure the remittance is successfully processed.
Employers who have not yet registered on the HELB Employer Portal have also been urged to create accounts and complete the registration process.
New users can search for their organisation by entering part of its name. If the organisation does not appear in the system, employers can use the registration option provided on the portal to add it.
Once registration and verification are completed, employers can access their dashboard, view company details and remittance history, manage employee records and obtain a compliance certificate.
Employers hiring HELB beneficiaries face repayment obligations
HELB has also reminded newly registered employers that they have specific obligations when recruiting workers with outstanding HELB loans.
Such employers are required to notify the board and ensure the applicable deductions are made from the employee’s salary, wages or other remuneration and remitted within the required timelines.
The latest reminder comes as HELB intensifies efforts to improve loan recovery and enforce compliance among employers and beneficiaries.
The board introduced a Ksh3,000 monthly penalty in March for employers who fail to declare employees with outstanding HELB loans or fail to remit the required deductions.
The penalty applies to each affected employee and can be backdated to the worker’s date of employment.
The move has increased pressure on employers to ensure their employee records are accurately declared and that deductions are submitted to HELB without delay.
HELB turns to KRA in wider loan recovery push
The employer directive is part of a broader effort by HELB to strengthen the recovery of billions of shillings in outstanding student loans.
Last month, HELB announced plans to work with the Kenya Revenue Authority (KRA) to improve efforts to trace and recover unpaid loans, particularly among borrowers operating in the informal sector.
The proposed collaboration is expected to allow HELB to leverage KRA’s wider reach and data systems as it seeks to identify borrowers and improve repayment compliance.
With the August 15 deadline approaching, employers with HELB deductions have therefore been urged to complete their monthly remittances on time and maintain accurate beneficiary records to avoid penalties and compliance complications.
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