HELB Announces Ksh1,500 Monthly Loan Repayment Option for Unemployed Kenyans

The Higher Education Loans Board (HELB) has clarified that beneficiaries must start repaying their student loans regardless of whether they are formally employed, self-employed, or unemployed. The board reminded graduates that loan repayment begins within one year of completing their studies.In a notice issued on Wednesday, November 11, HELB encouraged unemployed and self-employed borrowers to make payments based on what they can afford. The board said graduates should not wait until they secure formal employment before starting to repay their loans.

HELB recommended a minimum monthly payment of Ksh1,500 for informal workers and low-income earners. It encouraged borrowers to start with manageable amounts and remain consistent as they work towards clearing their outstanding loan balances.

The board noted that even people running small businesses, selling clothes, operating kiosks, or working as freelancers can repay their loans. It also encouraged beneficiaries to make voluntary payments before or after completing their studies to reduce their loan balances.

However, some borrowers, particularly those in formal employment, pay higher monthly amounts of up to Ksh5,000. HELB may recommend larger deductions depending on the amount borrowed, the repayment period, and whether the borrower has accumulated penalties due to delayed payments.

The board uses a reducing balance method to calculate interest on outstanding loans. This means borrowers who pay more than the required amount can reduce their loan balances faster and save money on interest. HELB encouraged all beneficiaries to develop consistent repayment plans to support other students seeking financial assistance.

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