The Higher Education Loans Board (HELB) has unveiled a significant relief measure for student loan defaulters, offering an 80% waiver on accumulated penalties for those who fully repay their outstanding loan balances.
According to a statement released on August 13, this initiative targets over 380,000 borrowers nationwide who have defaulted on their loans, collectively owing nearly Ksh42 billion. More than 120,000 of these defaulters have been reported to Credit Reference Bureaus (CRBs), affecting their access to future credit.
Penalty Accumulation and Risks
HELB imposes a monthly penalty of Ksh5,000 for each missed installment, which rapidly increases the total debt. Defaulters also face potential blacklisting and public exposure through published names and photos in newspapers. The board collaborates with employers and the Kenya Revenue Authority to track down non-compliant borrowers, including those in informal sectors.
Repayment Options
To facilitate loan clearance, HELB has streamlined repayment methods:
- Dialing the USSD code *642# to access loan repayment via mobile money.
- Using the HELB Mobile App to log in and complete payments securely.
- Accessing the Loanee Self-Serve Portal at www.hef.co.ke for online repayments.
Borrowers who settle their loans in full are advised to obtain official clearance directly from HELB, as employers cannot confirm loan settlement status.
This waiver presents a crucial opportunity for borrowers to eliminate their debt burdens and regain financial stability.
