The Higher Education Loans Board (HELB) is facing a critical sustainability crisis that threatens the academic future of thousands of Kenyan learners.
According to the latest data for the financial year ending June 30, 2025, the fund is grappling with an alarming surge in non-repayment, leaving a massive hole in the agency's balance sheet.
Currently, the total value of unpaid loans has ballooned to Sh89.9 billion, a figure that highlights a deepening culture of default among former students who have entered the workforce.
The scale of the problem is reflected in the sheer number of individual accounts in distress. Approximately 563,949 borrowers are officially in default, representing a significant portion of the board's portfolio.
Even more concerning is the rate of non-compliance among those whose loans have reached maturity; a staggering 77% of matured accounts are not being serviced. This lack of revolving funds has created a direct ripple effect on the next generation of scholars, resulting in a funding shortfall of Sh33 billion.
Roughly 100,000 students now risk missing out on vital financial support, a situation that could stall their transition to higher education or force them to drop out entirely.
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