The Higher Education Loans Board (HELB) has sent a reminder to employers to remit employees’ loan deductions by the 15th of every month to avoid penalties and protect workers’ repayment records.
In a public notice dated October 13, as seen by Kenyans.co.ke, HELB asked employers to declare deductions accurately and ensure payments reach the board within the stipulated timeline.
“Employer Reminder! HELB deductions for your employees are due for remittance by the 15th of every month,” HELB stated.
Adding, “Ensure timely declaration and remittance to keep your employees’ loan accounts in good standing. Beat the deadline. Remit on time. Stay compliant!”
University of Nairobi students at a graduation ceremony in December 2019.
Photo
UoN
Employers are expected to access the HELB Employer Portal to determine each employee’s targeted monthly deduction and to remit and declare the correct amount.
Implications of Late Remittance
Employers who fail to remit deductions face a monthly penalty of Ksh3,000 per affected employee, with liability potentially backdated to the worker’s date of employment.
The HELB Act also provides for a penalty of about five per cent of outstanding deductions for every month, or part of a month, that the money remains unpaid.
Additionally, Section 17 of the same act states that failure to meet employer obligations without reasonable excuse may result in prosecution and civil debt recovery, while unremitted deductions may leave employees’ accounts with unpaid balances.
The warning comes as HELB faces growing pressure to recover student loans, with data from the 2026 Economic Survey by the Kenya National Bureau of Statistics (KNBS) showing collections fell by 21 per cent to Ksh4.1 billion.
The report also shows more than 281,000 graduates have reportedly failed to repay matured loans, pushing cumulative defaults to Ksh40 billion, while the non-performing loan rate has reached 31.4 per cent.
The board is also grappling with a Ksh34 million shortfall in statutory deductions, which are withheld from employees but have not been remitted by employers, while diaspora recoveries reportedly fell to Ksh20 million from a previous high of Ksh100 million.
Meanwhile, President William Ruto announced proposed reforms to provide full government funding for students admitted to public universities and colleges, subject to parliamentary approval and amendments to the HELB Act, though questions linger on the funding methodology of the plan.
President William Ruto speaking during the signing of an MoU between the Government of Kenya and Endelevu Enterprise Corporation at State House, Nairobi, October 6, 2026
PCS