Understanding HELB Loan Repayment Obligations

The Higher Education Loans Board (HELB) in Kenya provides financial aid to students pursuing tertiary education. Once you complete your studies, HELB expects repayment to begin within a specified period. Failing to adhere to this schedule can result in penalties, accumulation of interest, and legal consequences. This article breaks down everything you need to know about repaying your HELB loan — timelines, methods, penalties, and what to do if you’re unemployed.

When Does HELB Loan Repayment Begin?

Repayment starts one year after completing studies, whether or not you are formally employed. This grace period is intended to give graduates time to transition into the workforce. However, interest begins to accrue immediately after the grace period ends, making it financially wiser to start repayments early, even before the official due date.

Note: If you secure employment before the grace period ends, you're encouraged to begin repayment immediately to minimize interest and penalties.

How Is the HELB Loan Amount Determined for Repayment?

Repayment is calculated based on:

• 1.Total amount borrowed

• 2.Interest accrued (currently at 4% per annum for undergraduate loans)

• 3.Penalties (Ksh. 5,000 per month for delayed payments)

HELB issues you a loan statement which breaks down:

1. 1.Principal amount

2. 2.Interest charged

3. 3.Penalties (if any)

4. 4.Total amount due

You can check this statement by logging in to your HELB portal account or by contacting HELB customer service.

Modes of HELB Loan Repayment

You can repay your HELB loan through multiple channels. Here’s a breakdown:

1. Salary Check-Off System

If you're employed, your employer is required by law to deduct the HELB loan monthly and remit it directly to HELB. Here's how:

• 1.Notify your HR that you have a HELB loan.

• 2.Provide your ID number and HELB account number.

• 3.HELB then gives your employer a monthly deduction schedule.

Tip: Always confirm that your employer is submitting your deductions to HELB to avoid penalties.

2. M-PESA (Mobile Money Payment)

To repay via M-PESA:

• 1.Go to M-PESA > Lipa na M-PESA > Paybill

• 2.Enter HELB Business Number: 200800

• 3.Account Number: Your National ID Number

• 4.Enter amount you wish to pay

• 5.Enter your M-PESA PIN and confirm

Note: You’ll receive a confirmation SMS from both M-PESA and HELB.

3. HELB Portal Payment

• 1.Log into your account on the HELB website.

• 2.Navigate to “Repay Loan” section.

• 3.Choose payment method (Card, Bank transfer, etc.)

• 4.Follow the instructions provided.

4. Bank Payments

Payments can be made through HELB-partner banks, including:

• 1.Kenya Commercial Bank (KCB)

• 2.Equity Bank

• 3.Co-operative Bank

• 4.Family Bank

Use your National ID as the account reference number.

5. Diaspora Repayments

If you are abroad, you can repay via:

• 1.WorldRemit, PayPal, or Wave

• 2.Bank wire transfers to HELB’s foreign accounts

• 3.Contact HELB for bank account details and instructions.

Penalties for Non-Repayment

HELB imposes a Ksh. 5,000 monthly penalty for every month you fail to make a scheduled payment after the grace period. Penalties accrue quickly and inflate your balance substantially. HELB is also known to:

• 1.Blacklist defaulters with CRB (Credit Reference Bureau)

• 2.Pursue legal enforcement

• 3.Bar you from government jobs or tenders

What If You’re Unemployed?

If you are unemployed and unable to begin repayment:

1. 1.Write to HELB explaining your employment status.

1. 2.Attach supporting documents (CV, job applications, etc.)

1. 3.Request for a repayment moratorium or rescheduling.

HELB may give you a temporary reprieve but this must be officially requested.

How to Track Your HELB Loan Status

Always track your repayment progress by:

• 1.Logging into the HELB online portal

• 2.Checking your email for payment confirmations

• 3.Visiting HELB offices if you need clarification

Tips for Managing HELB Loan Repayment

• 1.Start repaying early: Even small amounts reduce your interest over time.

• 2.Avoid penalties: Make regular payments, even during unemployment if possible.

• 3.Update your contact details: HELB sends critical updates via SMS and email.

• 4.Use automated reminders: Set calendar alerts to avoid missed payments.