NAIROBI, Kenya, Oct 31 — The Higher Education Loans Board (HELB) has revealed that lawyers and accountants lead in student loan defaults, even as the agency pushes for new legal powers to freeze bank accounts of beneficiaries who have refused to repay their loans.
HELB Chief Executive Officer Godfrey Monari said that 21,356 lawyers, 19,580 accountants, 16,855 doctors, and 12,014 engineers have failed to honour their repayment obligations, despite many being in stable employment or running profitable businesses.
“We are moving to strengthen our legal framework so that we can freeze the bank accounts of defaulters who are able but unwilling to pay,” said Monari. “This is about fairness and sustainability — HELB is a revolving fund; when you repay, another student gets a chance to study.”
Monari noted that while top professionals dominate the default list, teachers remain the most reliable payers, collectively remitting nearly Sh200 million monthly through the Teachers Service Commission (TSC).
“We celebrate teachers for their discipline. They pay consistently, even in advance, to clear their HELB loans and qualify for promotions or credit facilities,” he said.
The CEO disclosed that HELB has already listed 124,640 defaulters with the Credit Reference Bureau (CRB) and handed over 83,500 cases to debt collectors.
“Our process is simple: we issue three reminders, then list you with CRB. If you still don’t pay, we hand over the case to debt collectors — and now, with legal backing, we’ll be able to freeze accounts to recover funds,” Monari explained.
HELB currently manages over 300,000 matured loan accounts, with some beneficiaries having gone more than a decade without repayment.
Monari clarified that the agency differentiates between unemployed graduates, those willing but unaware of repayment channels, and those deliberately refusing to pay.
“We understand that it can take time to find a job — studies show most graduates take up to five years to secure stable employment. But once you can pay, we expect you to do your part,” he said.
On ongoing disbursements, Monari announced that HELB has processed 26,000 student appeals worth KSh 700 million for the 2025/26 financial year and is awaiting supplementary budget funds to reopen the loan application portal.
He added that students in private universities will continue to receive up to 60 percent of the cost of comparable programs in public universities, saying HELB cannot base its loans on higher private tuition fees.
Monari emphasized that the impending crackdown is not punitive but intended to safeguard the sustainability of the student financing system.
“We are not out to frustrate anyone. We only ask for responsibility. This is a national resource — if you benefited, you should help the next generation benefit too,” he said.
