HELB UNVEILS 80% PENALTY WAIVER TO RECOVER BILLIONS IN STUDENT LOAN ARREARS

The Higher Education Loans Board (HELB) has launched a new campaign aimed at encouraging former beneficiaries to repay their outstanding student loans. Dubbed “Be the Reason Someone Believes,” the campaign offers an 80% waiver on penalties for borrowers who clear their full loan balances between June and July 2025.

In a public notice issued on Tuesday, June 17, HELB emphasized the importance of loan repayments in sustaining the student financing program. The board noted that every payment helps fund the education of another student, calling on defaulters to take advantage of the waiver. “HELB opened the door to your education. Now, your repayment can light the path for another dreamer,” read part of the announcement.

The waiver applies only to penalties accrued over time and not the principal loan or interest. To qualify, borrowers must settle their entire outstanding balance within the specified two-month period. HELB stated that this initiative is designed to promote responsible repayment behavior while easing the financial burden of defaulters.

Borrowers can make payments through several methods, including USSD code *642#, the HELB Mobile App, employer check-off for those in formal employment, or via the HELB Portal at www.helb.co.ke. Walk-in services are also available at 28 HELB desks and Huduma Centres nationwide, and at the main HELB office in Anniversary Towers, Nairobi.

This announcement comes amid growing concern over unpaid loans amounting to Ksh40 billion. HELB Chief Executive Officer Geoffrey Monari revealed in a media interview that 51,594 former students who graduated over 20 years ago owe Ksh8 billion, while 23,786 others from between 12 and 17 years ago owe Ksh6.6 billion.

Monari pointed out that the biggest obstacle to recovering these funds lies in the high levels of informal employment in the private sector, which makes tracking defaulters difficult. The waiver is therefore part of HELB’s broader strategy to enhance recovery while ensuring more students have access to educational funding.

For further assistance, borrowers are encouraged to contact HELB via phone at 0711 052 000 or by email at contactcentre@helb.co.ke.