Bad News for Kenyans as HELB Issues a Notice to Informal Sector Workers

Former university and college students who benefited from Higher Education Loans Board (HELB) funding are required to start repaying their loans within one year of completing their studies, regardless of their employment status.

The requirement applies to graduates who are unemployed, self-employed or running businesses. This means that failing to secure a job after graduation does not automatically exempt former students from their loan repayment obligations.

HELB has also indicated that borrowers can repay their loans according to their financial ability, with KSh1,500 recommended as a minimum monthly payment baseline.

The repayment requirement comes at a time when many young Kenyans are struggling to secure employment after completing university and college education. For some graduates, meeting monthly financial obligations remains a challenge as they search for stable sources of income.

Those who are self-employed or operating small businesses are equally expected to make arrangements to repay their outstanding loans within the stipulated period.

The flexible payment arrangement allows borrowers to contribute amounts they can manage instead of being required to make large monthly payments. The recommended KSh1,500 baseline provides a starting point for graduates planning how to meet their obligations.

HELB loans are intended to support students in accessing higher education, with beneficiaries expected to repay the funds after completing their studies. The repayments also help make funds available to support other students seeking financial assistance.

The reminder is particularly important for recent graduates who may assume that loan repayment only begins after securing formal employment.

Former students are therefore encouraged to understand their repayment responsibilities and make appropriate financial arrangements to avoid falling behind on their obligations.

For thousands of unemployed graduates, the message raises concerns about balancing the search for employment with the responsibility of repaying education loans.