More than 316,000 Kenyan graduates have failed to start repaying their Higher Education Loans Board (HELB) loans, contributing to a 35% default rate, CEO Geoffrey Monari revealed in a recent interview on KBC Channel 1. Out of 1.7 million beneficiaries, about 1 million have completed their studies, yet only 400,000 are actively repaying their loans, while 300,000 have not begun repayments, and 200,000 have fully cleared their debts.
Monari warned that penalties apply to defaulters but emphasized that enforcement is not HELB’s primary goal. “We don’t want to reach that point,” he said, urging graduates to voluntarily start repayments. The board is actively tracking defaulters to recover funds, as the growing number of loan beneficiaries strains available resources.
HELB’s budget for the next financial year is Ksh34 billion, but Monari admitted this may be insufficient due to rising demand. He plans to petition Parliament for additional funding to support more students. The board has also introduced a Means Testing Instrument to assess financial need, but Monari noted that inaccurate data from applicants—often due to third-party submissions—leads to incorrect funding allocations.
Under the new funding model, scholarships and loans vary based on need. Medical students in Band One receive 70% scholarships, 25% loans, and 5% household contributions, while those in Band Five get only 30% scholarships, 30% loans, and must cover 40% of costs. Students dissatisfied with their placement can appeal through a reopened portal.
Monari praised the separation of university placement from funding, ensuring only eligible students receive support. This shift followed recommendations from the Presidential Working Party, which found that some students could afford tuition without government aid.
As HELB grapples with defaults and funding shortages, Monari urged graduates to honor their obligations and applicants to provide accurate information. With higher education demand rising, sustainable repayment and funding strategies will be crucial to keeping Kenya’s student loan system viable.
