Police to Track HELB Defaulters as Loan Recovery Hits Crisis Point

Thousands of Kenyans who once benefited from the Higher Education Loans Board (HELB) are now on the radar. After years of issuing warnings and offering waivers, HELB is taking the gloves off.

The board has announced plans to work with law enforcement agencies to hunt down loan defaulters, both within Kenya and abroad.

What started as an effort to fund education for the needy has become a financial crisis. With rising default rates, the government is now cracking down, and non-payment will no longer be ignored.

HELB Defaulters Face Nationwide Crackdown in New Police-Backed Operation

In a bold move announced on May 30, HELB CEO Geoffrey Monari revealed that the board is partnering with police to recover unpaid loans. Monari made the announcement while appearing before the National Assembly’s Public Investments Committee on Governance and Education.

He described the decision as necessary and overdue.

“This is not just about money. It’s about responsibility and national duty,” Monari said. “When former students default, they block the next generation from accessing these same funds.”

HELB’s model depends on loan recovery. The board collects repayments from former students and uses the funds to offer loans to new applicants. But that cycle has broken. According to Monari, the growing number of HELB defaulters has made the fund unsustainable.

The police will now assist in tracing borrowers, both locally and abroad, who are employed but have refused to begin repayment. This move follows years of leniency, including grace periods, flexible repayment plans, and waivers on penalties.

HELB Defaulters Ignore Final Warnings Despite 80 Percent Waiver

Before deciding to engage law enforcement, HELB made several efforts to encourage voluntary repayment. In March 2025, the board offered an 80 percent waiver on accrued penalties for defaulters who settled their full loan balances.

The offer was simple: clear your HELB loan in one payment, and the majority of your fines disappear.

“Settle your HELB Loan in a lump sum and enjoy an 80 per cent waiver on accrued penalties,” read the official notice. HELB even made repayment accessible via mobile, urging Kenyans to dial *642# or use the online portal.

But despite the generous terms, response from defaulters was underwhelming.

Many borrowers blamed unemployment for their inability to repay. Others said the grace period ended before they had secured stable income. But for HELB, the time for waiting is over.

Thousands failed to act, even with the warning notice clearly stating the consequences of inaction. As a result, the board has turned to enforcement.

HELB Urged to Balance Enforcement with Outreach and Support

While lawmakers supported the loan recovery mission, members of the Public Investments Committee advised HELB to do more than just chase payments. They called on the board to expand community outreach, highlight success stories, and find alternative funding beyond government contributions.

They stressed the need to show Kenyans why HELB matters—and how compliance helps future students access education.

Monari agreed but emphasized that recovery must come first. Without it, HELB will struggle to fund even one new loan cycle.

As the police begin assisting in the hunt for HELB defaulters, many borrowers are scrambling. Some are rushing to contact the board, hoping to settle before enforcement reaches their door.

Conclusion

HELB has officially changed its tone. The days of soft warnings and flexible delays are over. By involving law enforcement, the board is sending a loud message to all HELB defaulters—repayment is no longer optional.

As Kenya continues to battle youth unemployment and economic hardship, this move may be controversial. But for HELB, it’s a matter of survival. And for students depending on future loans, it’s a fight for access to education.