The Higher Education Loans Board ( HELB ) has written off a total of Ksh347 million in loans linked to 2, 605 deceased loan defaulters’ during the 2024/ 25 financial year under the Student Self-Protection Scheme.
In a briefing to the National Assembly’s committee on Education, HELB carried out an extensive tracing exercises to track its records with national vital statistics and identify borrowers who have passed away.
The loan write offs forms parts of HELB’s ongoing efforts to clean up its book and manage the increasing challenge of loan defaulters.
The board reported a significant improvement in loan recovery, collecting Ksh5.21 billion during the year, an 11 percent increase from the Ksh4.71 billion recovered in the previous financial year
“Through enhanced linkages with the Kenya Revenue Authority (KRA) and the Public Service Human Resource Information System (HRIS), HELB successfully traced 11,600 loaners, resulting in recoveries totaling Ksh42 million,” the board noted.
In addition to this write off, HELB intensified field operations, with employer audits and inspections identifying 17,647 defaulters. This led to the recovery of Ksh285.21 million through enforced payroll deductions.
Self-service web portals for employers and students were introduced by HELB as part of its digital transformation initiatives.
According to the Board, the platform allows users to access loan statements make online repayments and download compliance and clearance certificates — a move that has significantly reduced in-person visits and improved service efficiency.
“These platforms have significantly improved user experience, reduced walk-in traffic, and enhanced transparency and efficiency in service delivery,” HELB said.
Additionally, the board presented a plan to significantly scale up recovery in the fiscal year 2025–2026.
To ensure loan repayment, HELB intends to add loan compliance verification directly into government procurement and professional licensing systems.
This means individuals or entities who have defaulted on their loans might be prevented from obtaining government contracts or renewing their professional licenses until they’ve fulfilled their repayment responsibilities.
HELB is also introducing flexible repayment plans, like daily and weekly installments, to accommodate the irregular income common in the informal sector and gig economy. This aims to broaden their reach and make it easier for individuals in these sectors to repay their loans.
Additionally, the board is ramping up efforts to recover loans from Kenyans living abroad through diplomatic engagement, targeted outreach, and strategic partnerships aimed at improving diaspora loan compliance.
