HELB clarifies loan repayment timeline for university and college graduates
By Dan Kauna, August 26, 2026The Higher Education Loans Board (HELB) has clarified the timeline for when former university and college students must start repaying their education loans.
In a statement posted on X on August 26, 2026, the board addressed common misconceptions among beneficiaries regarding when recovery begins.
HELB noted that many beneficiaries incorrectly assume repayment is linked strictly to formal government employment.
“A lot of you think HELB repayment only starts once you land a government job, lakini sivyo,” the board stated.
The one-year grace period rule
HELB explained that the law provides a one-year grace period following the completion of studies, after which loan recovery commences regardless of an individual’s employment status.
Under Section 15 of the Higher Education Loans Board Act (Cap 213A), a beneficiary’s loan becomes recallable one year after the completion of studies, or within a period the board deems fit.
This means the obligation to pay back is tied to the passage of time rather than securing formal work.
“Repayment begins one year after you complete your studies, whether you’re employed, self-employed, or running your own hustle,” HELB clarified.
The same legal framework requires all beneficiaries to inform the board of their postal address, physical location, and current employment status.
For those who remain unemployed after the grace period, the law expects them to formally communicate with HELB to avoid running into default penalties.
Repayment options and payment channels
Addressing beneficiaries who are working across different sectors, HELB urged former students to take proactive steps to clear their balances.
“Wherever your journey has taken you, it’s time to plan your repayment. We have options for every kind of hustle. Check them out and find what works for you,” the board added.
To facilitate payments, HELB outlined several accessible channels. Beneficiaries can repay their loans via the USSD short code *642#, through the official Loanee Self-serve Portal at www.helb.co.ke, or by downloading the HELB Mobile App.
Under the HELB Act, interest on undergraduate loans is charged at a statutory rate of 4 percent per annum.
Beneficiaries who fail to start repayment after the mandatory grace period risk monthly default penalties, credit bureau listing, and restriction from obtaining compliance certificates required for public sector employment.