The Higher Education Loans Board (HELB) has initiated aggressive recovery efforts to salvage its deteriorating financial position with plans to partner with law enforcement agencies, to track down loan defaulters.
HELB Chief Executive Officer Geoffrey Monari speaking during a meeting with the National Assembly’s Public Investments Committee on Governance and Education on Friday, May 30, 2025, stated that the board’s loan portfolio faces significant risk due to widespread defaults by past beneficiaries.
Over 324,000 students in universities and technical colleges missed out on loans in the year ending June 2025 due to a cash crunch at the Higher Education Loans Board, according to new data from the 2025 Economic Survey.
The report shows that HELB received 1,038,254 loan applications but was only able to support 713,426 students. This left 324,828 students without financial help despite the board requesting Sh81 billion to meet the increasing demand. HELB was only allocated Sh46.9 billion.
“The total number of loan applicants went up by 24.5 per cent to 1,038,254 in 2024-25,” states the Economic Survey, which was compiled by the Kenya National Bureau of Statistics (KNBS).
Loan applications have been rising steadily in recent years, showing the growing need for higher education support.
In the year ending June 2021, HELB received 376,137 applications. This number jumped to 833,857 in the year ending June 2024 and continued to grow in the following year.
Most of the students who apply for HELB loans come from low-income families and need the money to pay for tuition, accommodation, and other living expenses. The rising number of students qualifying for university admission has also increased the pressure on Helb’s limited resources.
According to KNBS, out of the 324,828 applicants who were not successful, 292,751 were students from public universities, 12,159 were from private universities, and 48,231 were from TVET colleges.
“Total loan applicants from public universities rose by 22.9 per cent to 668,637 while the loan beneficiaries increased by 24.5 per cent to 375,886 in 2024-25,” the report notes.
HELB allocates between Sh35,000 and Sh60,000 per student per year, depending on their financial background. Of this amount, Sh8,000 is paid directly to the university as tuition fees. The remaining amount is sent to the student’s bank account in two equal parts, covering both semesters.
HELB was created as a revolving fund, which means past beneficiaries are expected to repay their loans to allow new students to benefit. However, an increase in loan defaulters has made it difficult for HELB to keep up with demand.
According to Monari, HELB is finalising partnerships with law enforcement agencies to trace graduates both locally and abroad who are gainfully employed but have failed to begin servicing their education loans.
“This is not just about finance,” Monari emphasised.
He explained that the initiative aims to boost recovery rates and address the funding shortfalls that have left thousands of students unable to access loans.
“It’s about fostering a sense of responsibility and patriotism among those who have benefited from the fund. Compliance ensures we can support future generations from needy backgrounds,” he added.
In response, members of the Committee urged HELB to step up community engagement and awareness efforts.
“The Committee members challenged HELB to intensify efforts in community outreach through advertising, showcasing real-life testimonials from beneficiaries, and pursuing external resource mobilisation beyond government capitation,” a press statement from the National Assembly dated May 30, 2025, stated.
Over 300,000 university graduates who benefited from government-funded loans are yet to begin repaying their loans, raising concerns over the sustainability of the Higher Education Loans Board programme.
The board has funded 1.7 million Kenyans, with about 1 million having completed their studies. Of these, 400,000 are repaying, while 316,000 are yet to start.
HELB CEO Geoffrey Monari, Speaking during an earlier interview last month, revealed that the default rate currently stands at 35 per cent.
“Currently, HELB has supported 1.7 million Kenyans, of whom approximately 1 million have completed their studies. Out of these, 400,000 are repaying their loans, 300,000 have not started, and 200,000 have completed their studies,” he said.
The HELB boss confirmed that the board is closely tracking those who have failed to begin repayments. “If you don’t repay a HELB loan, a penalty will be charged to your account,” he warned, but clarified that enforcement is not the primary intention.
“We don’t want to reach that point,” Monari said, appealing to defaulters to take responsibility and start paying.
HELB normally gives borrowers a one-year grace period upon completion of their studies, after which they are expected to start repaying their loans to enable other students to also benefit from the fund.
