The Higher Education Loans Board (HELB) has announced an 80 per cent waiver to all borrowers who settle their outstanding loan balances in full.

🇰🇪 Breaking It Down

The announcement was made by the loans board via a statement seen by  Kenyans.co.ke on August 13, giving defaulters a real shot at finally clearing their debt.

“Settle your HELB loan balance in full and enjoy up to 80% waiver on outstanding penalties. This is your opportunity to clear your balance and take the first step towards financial freedom,” HELB stated.

This means that borrowers only qualify if they clear their full outstanding balance, after which the accumulated penalties get slashed by 80 per cent.

📌 What You Need to Know

The data behind this push shows staggering numbers, with HELB showing that over 380,000 beneficiaries have defaulted on their student loans nationwide, who altogether owe the board close to Ksh42 billion, and more than 120,000 of them have already been listed with Credit Reference Bureaus (CRBs).

When left unpaid, the penalties only get heavier, with HELB charging Ksh5,000 every month for each missed instalment, quickly inflating the total debt owed.

Beyond the fines, defaulters risk being blacklisted by credit reference bureaus, a move that can lock them out of loans, mortgages, and other financial services for years.

HELB has also repeatedly warned that it will publish names and photos of chronic defaulters in major newspapers while working with employers and the Kenya Revenue Authority (KRA) to trace non-compliant borrowers, including those in informal employment.

For anyone ready to clear their loan, HELB has made the process fairly simple , starting with the USSD code  *642# , where users log in, select loan repayment, and complete payment via mobile money platforms.

Additionally, the HELB Mobile App offers another option, letting borrowers log in, confirm their phone number and amount owed, and then key in their mobile money PINS to make payments.

📰 Source: Kenyans.co.ke