The Higher Education Loans Board (HELB) has announced an 80 per cent waiver on accrued penalties for borrowers who settle their outstanding student loan balances in full, in a renewed effort to recover billions of shillings owed by former beneficiaries.
In a statement issued on Thursday, August 13, the loans board said the waiver is available for a limited period and is intended to encourage defaulters to clear their loan accounts while significantly reducing the penalties accumulated over years of non-payment.
Under the offer, only borrowers who pay their outstanding loan balances in full will qualify for the waiver. HELB urged eligible beneficiaries to take advantage of the initiative, describing it as an opportunity to settle their debts at a reduced cost and regularise their repayment status.
The board did not indicate when the waiver programme will end but said payments can be made through the HELB Portal, the HELB Mobile App, or the USSD code *642#. Borrowers who successfully clear their balances can subsequently apply for a HELB Clearance Certificate, which confirms that their loan obligations have been fully settled.
The latest announcement comes as HELB intensifies efforts to improve loan recovery and replenish the revolving fund used to finance students pursuing higher education. The board has repeatedly emphasized that timely repayment is essential to ensure future university and TVET students continue accessing government-backed loans.
According to previous figures cited by HELB and reported by local media, hundreds of thousands of former beneficiaries remain in default, with unpaid loans amounting to tens of billions of shillings. The board has warned that persistent defaults reduce the resources available to support new applicants and place additional pressure on the higher education financing system.
Borrowers who fail to meet their repayment obligations continue to face financial consequences, including the accumulation of penalties and the possibility of being listed with Credit Reference Bureaus (CRBs), a move that can affect access to credit and other financial services. HELB has consistently encouraged graduates experiencing financial difficulties to engage the board and explore available repayment options rather than allow penalties to continue accumulating.
The waiver forms part of HELB’s broader debt recovery strategy, which has in recent years included repayment campaigns, borrower tracing initiatives and periodic penalty relief programmes aimed at encouraging voluntary compliance. Similar waivers have been offered in the past, although the board has maintained that such initiatives are temporary and should not be viewed as a permanent feature of its repayment framework.
The announcement is expected to provide relief for borrowers who have accumulated substantial penalties over time while helping the loans board improve recoveries needed to sustain funding for future students. HELB has advised eligible beneficiaries to verify their loan balances and complete repayment through its official channels before the limited-time offer expires.