The Higher Education Loans Board (HELB) continues to play a central role in financing higher education in Kenya, providing thousands of students with loans to cover tuition and living expenses. While the facility is a lifeline during university or college years, it comes with clear obligations once beneficiaries graduate or secure employment.
When Repayment Begins
HELB requires loan repayment to start one year after graduation or immediately upon securing employment, whichever comes first. For instance, a graduate who completes studies in November 2024 must begin repayments by December 2025, unless they secure a job earlier. Beneficiaries are encouraged to update HELB about their employment status to avoid accumulating penalties.
How to Repay: Two Main Options
HELB offers two repayment systems designed to suit both formally employed and self-employed individuals:
-
Check-off system – Employers automatically deduct monthly repayments from the employee’s salary and remit directly to HELB. This method ensures consistency and makes tracking easier through payslips.
-
Self-payment – Freelancers and informal sector workers can pay directly via:
-
M-Pesa Paybill 200800 (Account: ID number)
-
Bank deposits through Equity, KCB, Co-operative Bank, and Standard Chartered.
-
Interest and Penalties
HELB loans attract a fixed 4% annual interest rate, calculated on a reducing balance. Missing a repayment comes with a Ksh500 monthly penalty, which can quickly escalate the total debt. Borrowers also pay Ksh1,000 for a clearance certificate and other administrative charges for specific services.
Monthly Repayment Estimates
Monthly obligations depend on the loan amount, repayment plan, and income level. HELB generally expects borrowers to clear loans within five years (60 months). For example, a graduate with a loan of Ksh200,000 might pay between Ksh4,000 and Ksh6,000 per month, though early settlement is encouraged to reduce interest costs.
Tracking Loan Balances
Beneficiaries can monitor their repayment progress through:
-
HELB Mobile App – real-time access to statements.
-
HELB Portal (www.helb.co.ke) – detailed loan balances using ID credentials.
-
SMS to 5122 – quick updates for a small fee.
Early Clearance and Discounts
HELB allows borrowers to clear their loans early, which helps save on interest and accelerates access to the all-important clearance certificate required for government jobs, tenders, and visa applications. Occasionally, the board introduces repayment discount offers, encouraging graduates to settle balances faster.
Consequences of Default
Failure to comply with repayment obligations carries weighty consequences. Defaulters risk:
-
Extra penalties and ballooning debt
-
Listing with Credit Reference Bureaus (CRBs), limiting access to future credit
-
Disqualification from government services and tenders
-
Salary garnishment or legal action
Why Compliance Matters
While HELB loans offer life-changing opportunities for students across Kenya, repayment remains a civic and legal duty. Borrowers who plan wisely, repay consistently, and explore early clearance options stand to save money while safeguarding their financial credibility.
