HELB Loan To Use Police to Track Down Loan Defaulters
The Higher Education Loans Board (HELB) has announced an intensified effort to recover outstanding student loans from defaulters both within Kenya and abroad. The new strategy, revealed by HELB CEO Geoffrey Monari on Friday, May 30, involves partnering with law enforcement agencies to trace graduates who have yet to begin repayments.
Rising Default Rates Threaten HELB’s Sustainability
Speaking before the National Assembly’s Public Investments Committee on Governance and Education, Monari highlighted the growing concern over high default rates.
“At the heart of HELB’s operations is the philosophy of the revolving fund—recovering loans to re-lend to aspiring students. However, default rates continue to erode the fund’s sustainability,” Monari warned.
He emphasized that loan defaulters compromise the availability of funds needed to support new students, especially those from low-income backgrounds.
Collaboration with Police: A New Approach
HELB’s partnership with the police aims to identify and pursue defaulters, including those employed overseas.
“This is not just about finance,” Monari explained. “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.”
Monari indicated that the collaboration with law enforcement agencies is nearing completion, signaling a tougher approach to loan recovery.
Lawmakers Call for Broader Strategies
Committee members urged HELB to enhance public outreach by investing in advertising campaigns, sharing real-life testimonials from loan beneficiaries, and diversifying funding sources beyond government allocations.
Francis Sigei, Chair of the Committee, stressed the urgency of the situation:
“Education is the backbone of our nation’s future. We must not allow these institutions to collapse. Their survival is a matter of national interest.”
Lawmakers also summoned Education Cabinet Secretary Julius Ogamba Migos to present a comprehensive plan addressing the challenges facing HELB.
Borrowers’ Plight and HELB’s Response
While many graduates acknowledge the importance of repaying their loans, some cite a lack of employment opportunities as the primary reason for default. Borrowers have urged HELB to extend the grace period to allow them time to secure jobs before repayment begins.
In a bid to encourage compliance, HELB recently introduced an 80 percent waiver on penalties for borrowers who pay their loans in full. The Board urged defaulters to settle their debts through the USSD code *642# or via the HELB online portal.
Conclusion
HELB’s decision to involve the police in tracking loan defaulters marks a significant shift in strategy. As the Board seeks to maintain its revolving fund model, ensuring repayment from past beneficiaries is crucial for supporting future students.
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