No esacape, police to track HELB loan defaulters locally and abroad

By Newsflash Repoter

The Higher Education Loans Board (HELB) has unveiled a new strategy to pursue loan defaulters in Kenya and abroad, warning that high default rates are threatening the sustainability of the student funding scheme.

HELB Chief Executive Officer Geoffrey Monari said the agency is finalising a partnership with police and law enforcement agencies to help trace graduates who have benefited from the fund but are yet to start repayment.

Partnership With Police

Appearing before the National Assembly’s Public Investments Committee on Governance and Education on Friday, Monari told lawmakers that HELB’s growing loan portfolio was at risk, noting that thousands of beneficiaries were employed but unwilling to pay back.

“We are working closely with the police to track defaulters, both locally and internationally,” Monari said. “This is not just about finance. It’s about fostering responsibility and patriotism among those who benefited from the fund. Compliance ensures we can support future generations from needy backgrounds.”

The CEO revealed that the board is strengthening systems to identify Kenyans working overseas who have defaulted on repayments. He insisted that enforcement measures would be backed by improved outreach to encourage voluntary compliance before punitive action is taken.

Default Threatens Access to New Loans

Monari cautioned that continued defaults could cripple HELB’s ability to fund new students. Already, some first- and second-year students have been affected by uncertainty following a court ruling that declared the New Funding Model (NFM) unlawful.

“High default rates directly affect incoming students. If beneficiaries fail to pay back, future cohorts from poor families will have no access to higher education financing,” Monari explained.

MPs Push for Stronger Measures

Committee members urged HELB to enhance community engagement and invest in aggressive communication campaigns, including real-life success stories of beneficiaries who repaid their loans.

They also called for diversification of funding sources beyond government allocations to strengthen the board’s independence.

Committee chair Francis Sigei underscored the importance of protecting the loans board. “Education is the backbone of our nation’s future. We must not allow HELB to collapse. Its survival is a matter of national interest.”

Lawmakers agreed to summon Education Cabinet Secretary Julius Ogamba Migos to present a comprehensive plan to address HELB’s challenges, including long-standing issues of underfunding and delayed disbursements.

Students Complain Over Loan Delays

The issue of defaults came against the backdrop of growing complaints from students about HELB delays in releasing funds. Some students said they risked missing exams due to outstanding fees caused by late disbursements.

Joshua Luteti, a University of Nairobi student, expressed frustration: “Many of us face the risk of being barred from exams because HELB money is delayed. At the same time, the government expects us to stay in school without adequate support.”

The 2024 lecturers’ strike worsened the situation, with exams rescheduled and students reporting severe financial struggles, including difficulty affording daily living expenses.

What Next?

While HELB maintains that recovering loans from defaulters is critical to its survival, students and lawmakers alike are urging the agency to balance enforcement with empathy for those who are genuinely struggling to find employment.

For Monari, the message was clear: “We cannot allow the culture of defaulting to continue unchecked. Every shilling repaid means another deserving student can access education.”