The Higher Education Loans Board (HELB) is urging both first-time and continuing students enrolled in undergraduate and TVET programmes to apply for financial support through its loan and scholarship portal during the ongoing application window.
According to a recent update, 554,620 students had submitted their applications by August 6.
This total includes 390,499 undergraduate applicants and 164,121 TVET trainees.
“Don’t miss out, apply now and secure your funding,” Helb said in a public notice.
At the same time, the Board is appealing to previous beneficiaries to repay their loans, thereby helping to sustain the funding pool for future students.
HELB CEO Geoffrey Monari, in a statement released Wednesday, disclosed that over 250,000 Kenyans have defaulted on their student loans, resulting in unpaid debts totalling Sh32 billion.
“As of June 30, 2025, 67.5 per cent of the loan book was performing; 32.5 per cent of the portfolio remains at risk, with about 256,000 Kenyans holding Sh32 billion in default.”
To address this, Monari noted that HELB is actively pursuing recovery solutions, including alternative financing models such as crowdfunding and social bonds.
“We are tackling this through employer engagement, outreach to past beneficiaries of the scheme, smarter policies and stronger accountability. We have mobilised Sh3.3 billion from 43 partners, including counties, corporates and development partners,” he said.
In the 2024–2025 financial year, HELB disbursed a total of Sh53.4 billion, with Sh36.5 billion allocated as loans and Sh16.9 billion as scholarships.
By the end of June 2025, the full amount had reached 72,000 students.
READ ALSO:
MoE unveils Senior School guidelines as CBE transition starts January 2026
To facilitate repayment, defaulters are encouraged to use the USSD code *642#, which provides a simple way to settle outstanding balances.
Other repayment channels include the HELB mobile app, self-service portal, and employer remittance portal.
“Repaying your loans is more than just an obligation; it’s a powerful investment in the future of countless people,” the agency said.
Through the USSD platform, borrowers can log in, select ‘Loan Repayment’, input their ID, check their balance, choose the amount to pay, and confirm the transaction.
An SMS confirmation is sent once payment is completed.
“If you pay your loan in a lump sum, you get an 80 per cent penalty waiver,” Monari said.
Since the launch of the University Students Loan Scheme (USLS) and the Loan Disbursement and Recovery Unit (LDRU) in 1974, the government has disbursed a cumulative Sh179 billion to over 1.7 million Kenyans.
“Yes, there’s still a funding gap, and we are actively engaging the National Treasury and our partners to close it,” Monari said.
By Joseph Mambili
You can also follow our social media pages on Twitter: Education News KE and Facebook: Education News Newspaper for timely updates.
>>> Click here to stay up-to-date with trending regional stories
>>> Click here to read more informed opinions on the country’s education landscape
>>> Click here to stay ahead with the latest national news.
