Civil servants who received salary today heartbroken after HELB deducted up to Ksh5,000

Saturday, December 20, 2025, will be remembered by many civil servants as the day their long-awaited salaries were unexpectedly reduced. 

The Higher Education Loans Board (HELB) has officially begun enforcing mandatory salary deductions for Kenyans in both the private and public sectors who have defaulted on student loans. 

Some employees reported deductions of up to Ksh5,000, leaving them frustrated and heartbroken as they struggled to meet month-end expenses.

According to sources, HELB, in collaboration with the Kenya Revenue Authority (KRA), has contacted employers to communicate the repayment status of their staff and facilitate monthly deductions for defaulters. 

The process, guided by the HELB Act of 1995, requires employers to implement the deductions starting December 2025 and remit the collected amounts to HELB by the 15th of the following month. A completed Remittance Form must also be uploaded to the employer portal, ensuring transparency and proper accounting.

The memo from HELB outlined a repayment plan, emphasizing that deductions would vary according to an employee’s monthly salary. The Board has also made it clear that any loan-related inquiries should be directed to them directly and not to employers.

This enforcement follows months of planning by HELB, whose CEO Geoffrey Monari stated that the Board would pursue defaulters more rigorously through employer engagement, outreach to past beneficiaries, and strengthened accountability measures. 

Monari highlighted that, as of June 30, 2025, 67.5% of the loan book was performing, leaving roughly 256,000 Kenyans with Ksh32 billion at risk of default.

Monari also revealed incentives for borrowers, including an 80% penalty waiver for those who settle their loans in a lump sum. 

“We’re confident that, together with borrowers and employers, we can improve repayment rates through smarter policies and stronger accountability,” he said.

For many civil servants, however, the deductions came as a harsh surprise. Some reported that their December pay was almost halved due to cumulative arrears and ongoing repayment obligations. 

“It’s painful to see the hard-earned salary reduced by Ksh5,000 in a single month. We have bills, school fees, and rent to pay,” one employee lamented, expressing frustration over the lack of prior personal notification.

HELB advises borrowers to regularly check their outstanding balances via the HELB portal, mobile phone, or office visits. 

Repayments can be made through bank deposits, mobile money (M-PESA), online payments, or salary deductions, with flexible arrangements available for those unable to settle the full amount at once. Typically, repayment begins six months after graduation or leaving school.

The Higher Education Loans Board, established in July 1995, operates under the Ministry of Education. 

Its mandate is to provide financing to Kenyan students pursuing higher education at recognized universities and TVET institutions, both locally and abroad. 

A critical part of its responsibility is to recover funds loaned to past beneficiaries, ensuring sustainability of the loan scheme for future students.

While the Board’s mandate is clear, the emotional toll on employees is palpable. Civil servants and private-sector workers alike are now adjusting their budgets to accommodate the deductions, prompting discussions on the need for better communication and gradual repayment plans.

HELB has urged all defaulters to engage proactively with the Board, emphasizing that repayment is not only a legal obligation but a pathway to maintain financial credibility and access to future loans.