In 2019, a former Cabinet Secretary for Education sparked controversy by suggesting students who failed to repay Helb loans risked arrest, prompting scrutiny of the board's enforcement approach. The Higher Education Loans Board (Helb) CEO later emphasized strict repayment obligations, reigniting debates about the legal framework governing student debt.
Helb provides loans to students that become repayable after graduation, supplementing government funding for universities. Critics argue that threats of criminal prosecution misrepresent the legal process, which primarily involves administrative recovery rather than criminal sanctions. The Helb Act stipulates a Sh5,000 penalty for non-payment, but advocates stress enforcement should target those with means to repay rather than individuals facing financial hardship.
Legal experts highlighted concerns about criminalizing poverty, noting Kenya's challenging job market leaves many graduates unable to secure employment. The one-year grace period before repayment begins was criticized as unrealistic, with calls to extend it to three years. Proposals also included revising policies to protect students who leave studies due to academic or medical reasons.
The controversy underscored demands for legislative reforms to align Helb procedures with economic realities. Advocates urged the board to collaborate with universities to track graduates and avoid penalizing those unable to meet repayment deadlines due to circumstances beyond their control.
