HELB Introduces New Fines on Employers and Loan Defaulters

The Higher Education Loans Board (HELB) has announced new penalties aimed at employers and individuals who have not been repaying student loans.

According to HELB, the new measures target those who have failed to follow the required loan repayment guidelines. The board says this move is part of a broader strategy to recover over KSh100 billion in unpaid student loans.

Under the new rules, employers who fail to declare employees with HELB loans or do not submit the required monthly deductions will be fined KSh3,000 for each affected employee every month. On the other hand, individuals who have defaulted on their loans will face a monthly penalty of KSh5,000.

HELB has revealed that it is currently following up on more than 20,000 companies and around 360,000 loan beneficiaries who have not been meeting their repayment obligations.

The board also noted that many employers ignored a 2025 directive that required them to declare workers with HELB loans and ensure deductions are remitted. This lack of compliance has contributed to the growing number of defaulters.