The Higher Education Loans Board (HELB) has clarified that borrowers repaying their student loans through instalments can make a minimum monthly payment of Ksh1,500.
The guidance offers flexibility to former students who may not be able to make large lump-sum payments but want to keep servicing their outstanding HELB loans.
The clarification followed questions from borrowers seeking to understand the minimum amount they should pay once their loan repayment period begins.
HELB Sets Minimum Monthly Repayment
HELB recommends that borrowers paying their loans in instalments remit at least Ksh1,500 every month.
The board said the amount provides a starting point for borrowers who want to gradually reduce their outstanding balances while managing other financial obligations.
“Since you'll be paying in installments, we recommend a minimum payment of Ksh1,500 per month,” HELB said.
The minimum payment does not necessarily mean every borrower will be required to pay exactly Ksh1,500.
Individual repayment amounts can vary depending on the borrower’s outstanding balance, repayment history and other circumstances surrounding the loan.
Some Borrowers Pay More
While Ksh1,500 is the recommended minimum for instalment payments, some borrowers may be required or choose to pay significantly more.
Some former students have reported making monthly payments of up to Ksh5,000.
Borrowers with large undergraduate and postgraduate loan balances could face higher monthly deductions to ensure their loans are cleared within the applicable repayment period.
Similarly, borrowers who have remained in default for an extended period may face increased deductions once they secure employment.
Higher payments may be used to address missed repayments, accumulated obligations, and the need to bring the loan account up to date.
Paying More Can Reduce Interest
Borrowers who can afford to pay more than the minimum may benefit from clearing their balances faster.
HELB uses a reducing-balance method when calculating interest, meaning the outstanding principal decreases as repayments are made.
Making larger payments can therefore reduce the outstanding balance more quickly and potentially lower the amount of interest paid over the life of the loan.
For borrowers with sufficient income, voluntary payments above the minimum could help shorten the repayment period and accelerate debt clearance.
However, borrowers should consider their broader financial obligations before committing to significantly higher monthly repayments.
HELB Encourages Loan Repayment
HELB continues to encourage beneficiaries to honour their repayment obligations after completing their studies.
Loan repayments are important because the money recovered from former beneficiaries is recycled to finance loans for other students pursuing higher education.
The revolving nature of the fund means repayment directly supports the availability of financing for future beneficiaries.
Failure to repay loans, meanwhile, can affect the sustainability of the student financing system and increase the burden of recovering outstanding balances.
For borrowers, maintaining regular payments can also help prevent their accounts from falling deeper into arrears.
Minimum Payment Does Not Apply Equally
The Ksh1,500 figure should therefore be viewed as a minimum recommended instalment rather than a universal monthly deduction for every HELB borrower.
A borrower’s actual repayment obligation may be higher depending on the size and status of the loan.
Those who borrowed substantial amounts may require larger monthly payments to clear their balances within the expected repayment period.
Borrowers who have defaulted for years could also face different repayment arrangements depending on their circumstances.
Those who voluntarily choose to pay more can potentially reduce the period they remain indebted.
Borrowers Get More Flexibility
The latest clarification gives HELB beneficiaries greater certainty about the minimum amount they can use when making regular instalment payments.
For former students struggling with larger monthly deductions, the Ksh1,500 recommendation provides an accessible starting point for continued repayment.
At the same time, borrowers with the financial capacity to make larger payments have an opportunity to reduce their outstanding balances more quickly.
The key message from HELB is that borrowers should continue servicing their loans rather than allowing unpaid balances to accumulate.
HELB’s Ksh1,500 minimum gives borrowers greater repayment flexibility while encouraging consistent payments to reduce outstanding student debt and support future beneficiaries.
