Employers have been given until the 15th of each month to send student loan deductions to the Higher Education Loans Board (HELB), with delays in remitting the money exposing them to financial penalties.
HELB said employers are legally required to handle loan deductions as part of their statutory obligations whenever they employ graduates or other beneficiaries of its loans.
The agency said employers must first inform HELB when they hire a loan beneficiary. They are then required to deduct the amount prescribed for repayment from the employee’s salary and forward the money to HELB by the 15th through the HELB Employer Portal.
The reminder is aimed at ensuring deductions made from employees’ salaries reach the agency within the required timelines.
"New employers: Please register through http://bit.ly/4gtp8MV and ensure your monthly remittance obligations are fulfilled promptly," HELB said in a notice.
Employers who fail to declare beneficiaries, make the required deductions or submit the money within the set deadline may face financial penalties.
While urging employers to meet their obligations, HELB has also announced relief for borrowers struggling with accumulated penalties arising from unpaid or delayed loan repayments.
The agency is offering an 80 per cent waiver on outstanding penalties to borrowers who settle their loan balances in full.
"Settle your HELB loan balance in full and enjoy up to 80% waiver on outstanding penalties. This is your opportunity to clear your balance and take the first step towards financial freedom."
The waiver comes as the agency continues to encourage former students to clear their outstanding loans and penalties.
HELB has at the same time addressed claims that it had increased the interest charged on student loans to 12 per cent.
The agency said the annual interest rate remains at four per cent for undergraduate, TVET and KMTC loans, dismissing reports suggesting that borrowers were now being charged a higher rate.
"Any claims suggesting otherwise should be supported by verified facts and official communication from HELB," it said.
The clarification followed reports published by sections of the media claiming that HELB had raised its loan interest rate to 12 per cent.
HELB chief executive officer Geoffrey Monari has also rejected reports that medical students could leave university with debts of more than Sh4.2 million.
Monari said the figure did not take into account the HELB portion of the funding available to medical students under the current student-centred funding framework.
"Under the current student-centred funding framework, the maximum cumulative HELB funding available to a medical student over the duration of study is Sh2,308,116 subject to eligibility and the annual assessment," he said.
He said the agency would continue supporting government efforts to widen access to higher education by providing affordable financing to students according to their level of need.
The 2026/27 Jielimishe loan application for salaried learners is currently open, while applications for continuing students are also ongoing.
"HELB continues to implement government policy aimed at expanding equitable access to highr education through affordable financing mechanisms that supports students based on their level of need," Monari said.