Ledama Olekina urges govt to scrap 4% interest on HELB loans
By Cynthia Lodite, May 25, 2026Narok Senator Ledama Okekina has urged the government to eliminate interest charges on loans issued by the Higher Education Loans Board (HELB), arguing that high youth unemployment makes the current 4% burden unfair.
In a post on his official X account on Monday, May 25, 2026, Ledama explained the challenges faced by youth due to job scare which in turn delays the loan repayment.
“We must scrap interest on HELB loans. Our youth deserve opportunity, not debt. When jobs are scarce, imposing a 4% interest burden is unjust especially on loans funded by taxpayers. President Ruto must act on this now,” Ledama said.
HELB currently charges a 4% annual interest rate on undergraduate loans on a reducing balance, plus a KSh 1,000 ledger fee per year. Repayment typically begins one year after completion of studies, with a standard tenor of up to 10 years.
Auditor General report on HELB
The Higher Education Loans Board (HELB) is grappling with Sh89.7 billion in defaulted loans, with borrowers failing to pay principal, interest, ledger fees or insurance charges.
According to the Auditor General Nancy Gathungu, over 730,000 accounts had matured as of June 30, 2025, carrying a total running balance of Sh115.4 billion, raising concerns over the fund’s ability to sustain student loans in the future.
“Included in the matured loans are five hundred and sixty-three thousand nine hundred and forty-nine (563,949) loan accounts with a running balance of Sh89,869,844,221.
A report by the Auditor General provides a detailed breakdown of default rates by loan age.
Loans issued within the last five years, held in 281,459 accounts amounting to Sh39.6 billion, recorded a 44 per cent default rate.
Those aged five to 10 years, covering 191,766 accounts worth Sh33.4 billion, had a 37 per cent default rate.
Loans between 10 and 15 years old, spanning 32,608 accounts worth Sh8 billion, had a nine per cent default rate.
Accounts aged 15 to 20 years, numbering 11,377 with a total of Sh2.9 billion, recorded a three per cent default rate, while loans between 20 and 25 years, held in 8,118 accounts, were also reported.
The Auditor General urged the board to urgently strengthen its debt recovery strategies and reassess loan policies to ensure the continued availability of funding for students.