The Higher Education Loans Board (HELB) has announced blacklisting of 71,806 loan defaulters, marking a significant escalation in its efforts to recover outstanding debts.
This move comes as the agency grapples with a staggering Ksh35.14 billion owed by over 310,940 borrowers, a situation that threatens the sustainability of its student financing programs.
The 71,806 loan defaulters have already been negatively listed with Metropol and TransUnion credit reference bureaus, potentially barring them from accessing credit facilities.
However, 412,194 others who have been actively repaying their loans have been listed positively for performance.
“The amount owed is enough to fund the education of up to 289,000 learners in colleges and universities for a whole academic year,” HELB CEO Geoffrey Monari revealed in a statement.
He further noted other strategies employed by the agency to address the default crisis including initiating legal proceedings against chronic defaulters.
The agency has also implemented penalty waivers and flexible repayment plans to encourage compliance.
Despite these efforts, the number of defaulters remains alarmingly high, with many citing economic hardships as the primary reason for non-payment.
