HELB Reveals Details Behind KSh 33.2 Billion in Outstanding Graduate Loans

The Higher Education Loans Board (HELB) has disclosed that over KSh 33.2 billion in student loans remains unpaid by graduates, shedding light on a growing financial challenge within Kenya’s education financing system.

The revelation came during an oversight visit by the National Assembly’s Education Committee to HELB’s Nairobi offices on July 15.

According to HELB CEO Geoffrey Monari, out of 1.03 million matured loan accounts, at least 293,122 are in default.

Of the total debt, KSh 15 billion has been classified as non-performing, significantly reducing HELB’s capacity to fund new and continuing students across the country.

Monari explained that the bulk of the repayment difficulties stem from two key issues: widespread graduate unemployment and the inability to track down former beneficiaries, many of whom are either working in the informal sector or have relocated without leaving updated contact information.

The lack of traceable employment records has severely undermined loan recovery efforts.

Parliament Demands Stronger Oversight and Solutions

Members of the Education Committee expressed deep concern over the sustainability of HELB’s funding model.

They called for urgent reforms in loan recovery strategies and greater transparency, particularly in how funds are allocated and reclaimed.

Of particular concern is the New Higher Education Funding Model, introduced in 2023, which uses a Means Testing Instrument (MTI) to determine a student’s financial need.

Tinderet MP and Committee Chair Julius Melly questioned the reliability and fairness of the MTI, noting that it has caused widespread confusion and anxiety among families seeking financial support for university education.

“One of the issues we want clarity on is the university funding model and the means testing instrument. It is giving Kenyans sleepless nights,” Melly stated.

In response, HELB Board Chair Hon. Ekwee Ethuro assured the committee that the Board is taking steps to strengthen its loan recovery systems and improve the MTI framework to better reflect the realities of students’ financial backgrounds.

Looking Ahead

As the number of students seeking loans continues to grow, lawmakers emphasized the need for immediate intervention to safeguard the future of higher education financing.

They pledged to maintain close oversight of HELB and to push for long-term policy changes that prioritize accountability, efficiency, and fairness in the loan issuance and recovery process.

This oversight comes at a critical time, as thousands of students await loan disbursements under the new model.

For HELB to remain effective, both the government and the institution must restore public trust and ensure that funding remains accessible to all deserving Kenyan students.