HELB Puts 64,000 Loan Defaulters on CRB as Unpaid Student Debt Hits KSh 32 Billion

The Higher Education Loans Board (HELB) has moved to crack down on loan defaulters by blacklisting over 64,000 former university and college students at the Credit Reference Bureau (CRB).

Rising Student Loan Debt Burden

HELB chief executive Geoffrey Monari revealed that more than 300,000 past beneficiaries collectively owe the state agency an estimated KSh 32 billion in unpaid loans. The board, which has supported students for over three decades, has disbursed close to KSh 195 billion since inception.

“Funds we recover are ploughed back into the scheme to assist new learners. Without repayments, the sustainability of the revolving fund is at risk,” Monari explained.

Why Many Borrowers Are Struggling

Graduates have cited high unemployment and unstable incomes as the main reason behind defaults. Cheluget Mutai, a Moi University alumnus, shared that despite finishing his studies in 2021, he has yet to secure steady employment that would allow him to pay back his HELB debt.

Kenya currently has about 708,000 students enrolled in universities and thousands more in technical institutions. With over 100,000 graduates entering the job market annually, HELB faces growing repayment challenges.

Government Response and New Measures

To improve recovery, HELB has adopted new strategies:

• Employer enforcement: Companies are required by law to disclose graduate employees and deduct repayments from salaries. This year alone, HELB carried out 236 inspections and billed 28,000 graduates who had not started remitting their dues.

• Self-protection fund: A small portion (0.037%) of each loan now goes into a reserve that offsets debts for beneficiaries who die before repayment. Already, around 2,000 cases have been covered under this scheme.

• Tighter monitoring: The agency is also considering working with law enforcement to trace defaulters both locally and abroad.

Continued Support for Students

Despite the repayment challenges, the government insists it remains committed to ensuring access to higher education. Education Cabinet Secretary Julius Migos Ogamba recently confirmed that KSh 9.46 billion had been disbursed in August to benefit over 309,000 students. Of this, KSh 5.76 billion went to tuition while KSh 3.7 billion was allocated to upkeep.

Ogamba emphasized that no student should be locked out of school due to financial constraints, reaffirming the state’s pledge to expand opportunities for learners from all backgrounds.

Don’t miss out on Kenyansnews updates, click to join our Telegram channel