NAIROBI, Kenya, Dec 4 — The Higher Education Loans Board (HELB) has moved to reassure past and current beneficiaries that it is fully compliant with the in duplum rule, following growing public concern over alleged ballooning loan balances.
In a public clarification issued on Wednesday, the agency stated that all student loan accounts are being managed in line with the High Court’s landmark judgment in Anne J. Mugure & 2 Others v HELB (2022), which affirmed that the in duplum rule applies to HELB and all lending entities.
The rule stipulates that interest and penalties on a non-performing loan cannot exceed the principal amount borrowed.
“Following the High Court judgment in Mugure & 2 Others v HELB (2021), we wish to clarify that HELB fully complies with the in duplum rule,” the Board said.
“This means that all HELB loan accounts continue to be managed in line with the judgment.”
HELB emphasized its commitment to “fair, lawful, and transparent loan management for all alumni and beneficiaries,” urging borrowers with concerns to contact its official customer service channels for account reviews or clarification.
In the August 2022 judgment, Justice Alfred Mabeya held that although HELB is not a bank, it is bound by the in duplum rule because the principle serves the public interest and protects borrowers from runaway interest and penalties.
Consumer rights
The petitioners had argued that HELB’s interest and fines often surpassed double the principal amount, disproportionately affecting unemployed or financially strained graduates.
The Court agreed, ruling that charging interest and penalties beyond the principal violated borrowers’ socio-economic and consumer rights under the Constitution.
While the Court did not strike down Section 15(2) of the HELB Act—which imposes monthly fines for non-payment—it directed that the provision must be interpreted subject to the in duplum rule, meaning interest and penalties must cease once the total debt reaches double the initial loan amount.
HELB’s statement comes amid rising social media complaints from former students who claim their loans continue to accrue interest and penalties despite partial repayments or long periods of unemployment.
The agency noted that corrective measures were implemented immediately after the 2022 ruling, including accounting adjustments to cap interest and penalties at the principal.
HELB added that it remains open to assisting any borrower who believes their account does not reflect the legally required compliance.
Amid ongoing debate over student loan affordability and graduate unemployment, the Board urged beneficiaries to verify their loan status through its official channels.
