- HELB has reported Sh25 billion in loan defaults from more than 272,000 former students.
- University entrants have more than doubled in a decade, rising from 88,928 in 2016 to an expected 202,133 in 2026.
- HELB has received 903,230 loan applications as of August 20, 2026, combining continuing and new applicants.
The Higher Education Loans Board (HELB) is grappling with Sh25 billion in loan defaults, money that could otherwise support thousands of needy students to access and complete higher education, even as demand for loans continues to climb.
HELB Chief Executive Officer Geoffrey Monari said more than 272,000 former students have defaulted on their loans, threatening the sustainability of the revolving fund that supports students in universities and TVET institutions.
Speaking at the Morendat Institute of Oil and Gas in Naivasha during a media sensitisation forum, Monari said the Sh25 billion could support more than 48,000 needy students to complete their higher education, secure employment and contribute to nation-building. “Currently we have a default rate of Sh25 billion from over 272,000 former students. We need this money to allow other vulnerable students to transit from secondary to tertiary institutions,” Monari said.
The defaulters are among more than 1.2 million Kenyans who have benefited from the HELB revolving fund since its inception.
Monari urged former students who are employed and earning an income to honour their loan obligations, saying recovered funds are critical to ensuring the revolving scheme continues supporting future generations.
HELB is implementing a multi-channel loan recovery strategy aimed at making repayment easier, strengthening compliance and ensuring recovered funds are channelled back into financing education. Employers are required to deduct 15 per cent of a loanee’s basic salary and remit the funds to HELB, with non-compliant employers risking a penalty of Sh3,000 per month.
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Monari noted that the number of students joining universities has grown significantly over the years, putting additional pressure on higher education financing. He said 88,928 students joined universities in 2016, compared with 202,133 students expected to join in 2026. As of August 20, 2026, HELB had received 903,230 loan applications, comprising 497,921 from continuing students and 405,309 from new applicants in universities and TVET institutions, figures driven in part by the 2025 KCSE cohort joining higher learning institutions alongside candidates from previous years.
Meanwhile, Universities Fund Acting Chief Executive Officer Dr Edwin Wanyonyi said the student-centred funding model had enabled more students to access higher education. However, he expressed concern that some students from financially stable families were applying only for loans while avoiding scholarships, noting that more than 8,000 students from relatively well-off families had opted for loans despite being eligible for scholarships, with some seeking the funds mainly for upkeep while their parents met tuition costs.
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With the number of university entrants more than doubling in a decade, HELB says recovering the Sh25 billion in unpaid loans is critical to keeping the revolving fund sustainable and ensuring that financial constraints do not lock needy students out of higher education.
By Agnes Orang’o
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