The Higher Education Loans Board (HELB) has rolled out tougher enforcement measures targeting employers and former students who have defaulted on loan repayments, in a bid to recover billions owed to the agency.
In a statement issued on Friday, March 20, HELB announced that employers who fail to declare staff with outstanding loans or neglect to forward deductions will face a penalty of Sh3,000 per employee every month. The fine will be backdated to the date the worker was first employed, significantly raising the financial exposure for non-compliant companies.
The Board said the crackdown is part of a wider plan to recover more than Sh100 billion owed by past beneficiaries. Borrowers themselves have not been spared, with HELB introducing a monthly penalty of Sh5,000 for individuals who remain in default.
According to HELB, more than 20,000 employers and about 360,000 loan beneficiaries are currently being pursued for non-payment. The agency linked the high default rate to poor compliance with a 2025 directive that required employers to play a direct role in loan recovery.
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That directive instructed organisations to submit staff details for verification, deduct 15 per cent from the salaries of employees who benefited from HELB funding, and remit the money to the Board. However, HELB says many employers have failed to follow these requirements, undermining the recovery process.
The Board stressed that unpaid loans will not be cancelled, underlining its determination to collect the funds and sustain support for current and future students seeking higher education. Officials noted that loan repayments are critical to maintaining the revolving fund that enables new beneficiaries to access financing.
To ease compliance, HELB pointed to its Employer Portal, which allows organisations to register, declare new staff who are loan beneficiaries, access billing schedules for accurate deductions, and remit payments through approved systems.
The Board urged employers to take advantage of the platform to avoid penalties and ensure smooth operations.
By Masaki Enock
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