BREAKING NEWS: HELB Blacklists 64,000 Loan Defaulters, Reports Billions in Unpaid Student Loans

The Higher Education Loans Board (HELB) has taken tough action against more than 64,000 former beneficiaries who have failed to repay their student loans.

The government agency has placed their names with the Credit Reference Bureau (CRB), a move that blocks them from accessing loans, mortgages, or other forms of credit from financial institutions.

According to HELB Chief Executive Officer Geoffrey Monari, the board is currently owed about KSh 32 billion in unpaid loans by more than 300,000 former students.

Monari explained that HELB operates as a revolving fund, meaning that money collected from past borrowers is used to support new students in universities and colleges. Without consistent repayments, the sustainability of the program comes under threat.

“Last year alone, HELB collected KSh 5.2 billion, which went directly to help over 160,000 students in universities and technical colleges,” Monari said.

He stressed that unless defaulters begin to take responsibility, future students from poor backgrounds may be denied the chance to pursue higher education.

Over the past three decades, HELB has disbursed more than KSh 195 billion in loans to Kenyan students. These funds have covered tuition fees, accommodation, meals, and study materials.

Currently, there are over 700,000 students enrolled in Kenyan universities, with more than 100,000 graduating each year.

However, unemployment and underemployment have left many graduates unable to make repayments on time.

Cheluget Mutai, a former student from Moi University, admitted that he has been unable to service his loan since completing his studies in 2021.

“I studied media science, but I have not secured a stable job. Without a consistent income, repaying HELB has been a real struggle,” he explained.

His story reflects the challenges faced by thousands of graduates across the country.

To tighten compliance, the law requires all employers to notify HELB within 30 days of hiring a graduate and to deduct loan repayments directly from their salaries.

Monari noted that inspections have been stepped up, with 236 audits carried out this year alone.

As a result, more than 28,000 graduates who had not started repayment were billed.

Education Cabinet Secretary Julius Ogamba recently announced that HELB disbursed KSh 9.46 billion in August 2025 to assist more than 309,000 students.

Out of this amount, KSh 3.7 billion went toward student upkeep while KSh 5.76 billion was used for tuition fees.

Ogamba assured students that the government remains committed to ensuring access to higher education, particularly for learners from disadvantaged families.

To safeguard its operations, HELB has also introduced a “self-protection fund.”

Under this arrangement, a small portion of every loan is set aside to cover cases where beneficiaries pass away before completing repayment.

So far, about 2,000 people with outstanding balances have been cleared through this scheme. Click here.