HELB Announces Massive Relief on Loan Penalties
The Higher Education Loans Board has rolled out a generous incentive aimed at helping thousands of former students finally settle their debts.
Under the new arrangement, anyone who pays off their entire outstanding loan balance in one go will receive an 80 per cent reduction on all accumulated penalties. This move gives borrowers a realistic chance to wipe the slate clean and regain control of their finances without the crushing weight of extra charges.
In its official statement, the board encouraged borrowers with the words: “Settle your HELB loan balance in full and enjoy up to 80% waiver on outstanding penalties. This is your opportunity to clear your balance and take the first step towards financial freedom.” The offer applies only when the full principal and remaining interest are cleared; partial payments will not unlock the discount. For many, this could mean thousands of shillings saved and a clean credit record restored.
The scale of the problem is significant. More than 380,000 beneficiaries across the country have fallen behind on repayments, collectively owing nearly 42 billion shillings. Of these, over 120,000 already appear on credit reference bureau lists, blocking their access to bank loans, mortgages and other financial services. Unpaid accounts also attract a stiff monthly penalty of 5,000 shillings for every missed instalment, causing debts to balloon rapidly.
Beyond the financial cost, defaulters face public exposure and aggressive recovery efforts. The board has warned that it may publish names and photographs of persistent non-payers in major newspapers. It is also collaborating with employers and the country Revenue Authority to track down those working in both formal and informal sectors, leaving few places to hide.
Once the balance reaches zero, it is essential to obtain official clearance directly from the board, as only HELB can issue the final confirmation that the debt has been fully discharged.
