HELB Waives 80% Penalty for Loan Defaulters Who Pay Loans in Full.
The Higher Education Loans Board (HELB) has announced a new initiative to fast track loan recovery by offering massive waivers on penalties to defaulting borrowers.
In a statement issued on Wednesday, 16 July 2025, HELB said beneficiaries who clear their outstanding balances in one lump sum will get 80% waiver on the penalties accrued.
“Settle your HELB loan with ease. Pay your balance in full today and get up to 80% waiver on penalties,” HELB said.
HELB said the waiver is part of a targeted recovery plan to encourage immediate repayment. Beneficiaries interested in the offer should reach out to HELB for more information on how to access the incentive. However, HELB did not specify the duration of the waiver.
This is the latest in a series of measures HELB has taken to improve repayment compliance. In March 2025, HELB gave defaulters a 7-day ultimatum, warning that continued non-payment would lead to enforcement action against guarantors including legal and administrative measures.
According to HELB data, the institution traced and re-engaged over 17,000 defaulters in the last 12 months and recovered KSh5.2 billion. Recovery efforts have included working with employers, reviewing graduation records and using government databases to track borrowers in the public and private sectors.
Chief Executive Officer Charles Ringera said the Board has adopted a data-driven recovery model, using government-backed tracing tools and partnerships with financial institutions to track borrowers locally and internationally.
HELB also confirmed there is a huge funding gap for the 2025/2026 financial year. The Board got KSh26 billion allocations compared to KSh48 billion required to fund loans for students from low-income households in universities and Technical and Vocational Education and Training (TVET) institutions.Monari said the shortfall has already affected disbursements.
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“We paid upkeep for some, but not tuition. Second semester is worse; we haven’t paid tuition at all,” Monari said. “Universities and TVETs are bleeding. We avoided protests, but the money is just not enough.”
All loan beneficiaries are still required to settle their loans as per the Higher Education Loans Board Act and regulations.
HELB Waives 80% Penalty for Loan Defaulters Who Pay Loans in Full.