Why thousands of HELB defaulters are ending up on CRB list
Education
By
Mike Kihaki
| Sep 30, 2025
Thousands of Higher Education Loans Board (HELB) beneficiaries' dreams of accessing credit for business or personal development have turned into a nightmare.
A growing number of graduates who have failed to repay their student loans now find themselves listed with Credit Reference Bureaus (CRB), resulting in being locked out of future borrowing opportunities.
HELB Chief Executive Officer Geoffrey Monari confirmed that over 64,000 defaulters have already been blacklisted, and another 109,000 could face the same fate by today.
“We have done another verification and seen that we need to push. That is why we are under pressure to ensure those who can pay, actually pay,” Monari said, while on Spice FM on Tuesday, September 30.
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Since its inception in 1995, HELB has disbursed Sh195 billion to Kenyan students. However, only Sh32 billion has been recovered cumulatively from past beneficiaries this year.
In 2024 alone, HELB collected Sh52 billion, which helped support 49,000 students in universities and 114,000 in colleges.
“If we had not recovered that money, thousands of students would have been denied higher education. The exchequer released Sh18.2 billion of the Sh40 billion we required this year, meaning the balance had to be raised through recoveries. Without repayments, the system collapses,” Monari warned.
The decision to list borrowers on CRB has sparked controversy, with some questioning whether graduates without stable jobs should be punished.
But Monari insists the agency follows a transparent process before taking that step.
“Anybody who has a HELB loan today and has been listed has been approached at least three times. We confirm with stakeholders like KRA whether they have an income. Only those who ignore these reminders are listed,” he said.
Monari revealed that the majority of those currently listed are not recent graduates, but people who borrowed over 20 years ago.
Collectively, these long-term defaulters owe HELB more than Sh8 billion, with Monari saying HELB remains open to dialogue with borrowers who are genuinely struggling.
“We do negotiate with clients. If you are employed, we can agree on a repayment rate, usually about 10 per cent of your income. If you are self-employed, we even take as little as Sh500 a month. The point is to show goodwill,” he explained.
But critics argue that Kenya’s job market leaves many young people underemployed, making repayment difficult.
“This is a conveyor belt. If one generation takes the loan and refuses to repay, the next group of students is denied the chance to go to university or college. That is why it is important for all of us to honor our commitments.”
Monari acknowledges this reality but insists that listing only comes after due diligence.
“It takes an average of five years for a graduate to secure meaningful employment. We take that into account. But we cannot ignore cases where someone has had an income for decades and refuses to repay,” he said.
Still, he noted that HELB is willing to reassess cases where graduates can prove they lack any source of income.
“If you can prove you have no income, we will remove you from the CRB list.”
According to the Chief Executive, HELB remains the main financier of higher education in Kenya, and it is running on a fragile balance.
“This fund is not a right but a loan. We are currently not denying any student who applies on time, but the amounts vary depending on their level of need. However, for this to continue, beneficiaries must honour their obligation,” he added.
He said, unless former beneficiaries take responsibility, the conveyor belt of opportunity could grind to a halt, shutting out future generations from the promise of education.
“Many of us want to be funded, but when it comes to repayment, it becomes a problem. That is where the disconnect is.”