The Higher Education Loans Board (HELB) is now facing growing public criticism over how it handles student loan repayments in Kenya. Many young graduates and former beneficiaries are raising concerns about what they describe as unfair and hidden charges tied to the repayment model.
HELB, which was created to help university students access higher education, is being accused of trapping borrowers in unnecessary financial stress through policies that seem to work against the very people the institution is supposed to support.
One of the biggest issues being highlighted is how interest is charged on HELB loans almost immediately after the money is disbursed. This happens even before the student has finished their studies or gotten a job.
As a result, by the time a student graduates, the loan amount has already increased due to accumulated interest. This setup puts young graduates at a big disadvantage because they are already deep in debt even before they have the means to earn a salary. Many feel that this defeats the purpose of the loan, which should be a stepping stone and not a burden right from the start.
Even worse is the issue of repayment charges. According to multiple complaints, HELB does not just collect back the loan and interest, but also imposes a fee on every payment a borrower makes. These payments are divided across several disbursement batches. So, when a borrower makes a single payment, it is split among the different batches they received while in school. For each batch that is paid, HELB charges a separate transaction fee. These charges range from Ksh 130 to Ksh 300 depending on how much is being paid. This means that each repayment, instead of reducing the loan, comes with additional costs that add no value to the borrower’s financial recovery.
One borrower shared their story with Cyprian Nyakundi, explaining that they had paid a total of Ksh 47,000 towards their HELB loan but were charged Ksh 10,890 in transaction fees alone. This means more than 23% of what they paid went to charges instead of reducing their debt.
Using that same rate, anyone with a loan of Ksh 200,000 might end up paying an extra Ksh 50,000 just to make payments. This is money that doesn’t touch the principal loan or the interest, but is simply lost to administrative processes.
This system is seen by many as punishing borrowers for doing the right thing. Instead of being encouraged to repay their loans, they feel exploited by the very agency that gave them the money. What’s worse is that most of these fees and interest rules are not clearly explained when students sign the loan agreement. Many only find out after graduating and beginning repayment, when they start seeing unexplained deductions and charges.
A screenshot from Cyprian Is Nyakundi revealing the shady operations by HELB. Source/X
For many young Kenyans struggling to find stable jobs and make ends meet, this system is both confusing and unfair. It discourages financial discipline and makes it harder for graduates.
There is increasing pressure on HELB to explain its repayment model and to revise the system to make it fairer and more transparent. Without these changes, HELB risks becoming a symbol of frustration for Kenya’s youth, rather than the support system it was meant to be.
