Why teachers are top on repayment of HELB loans

They may not be among the best-paid professionals, but teachers have emerged as the most reliable professionals in repaying their Higher Education Loans Board (HELB) debts.

They have out shined professionals such as lawyers, doctors, and engineers who earn far more.

HELB Chief Executive Officer Geoffrey Monari says that teachers, despite their modest income, have shown unmatched discipline in clearing their study loans.

According to Monari, the Teachers Service Commission (TSC) remits about Sh200 million to HELB every month through payroll deductions, making teachers the most consistent group in loan repayment.

“The public sector professionals sustain repayment of loans while private sector compliance remains relatively low. Teachers are the strongest compliant group through the payroll check-off, and some even pay in advance to continue to the next level of studies,” Monari said on Friday.

This comes even as teachers remain among the lowest-paid professionals, with the lowest-earning teacher taking home Sh30,000 while the top-earning teacher gets Sh220,000 far below the six-figure salaries of doctors and lawyers. 

Yet, despite these earnings, teachers are also among the biggest contributors to the housing levy, remitting nearly Sh900 million every month from the TSC payroll.

On the other hand, well-paid professionals have been slow to settle their student loans.

 Monari revealed that 21,356 lawyers, 16,855 doctors, and 12,014 engineers are yet to repay their HELB loans. Accountants also feature prominently among those in default.

In total, more than 380,000 former university students have defaulted on loans amounting to Sh42 billion. 

Monari explained that the difference in repayment trends is largely due to the structured payroll system for teachers, which allows automatic deductions before salaries are processed.

 Most private sector professionals, including lawyers, doctors, and engineers, work independently or in small firms without such systems, making enforcement difficult.

But beyond the payroll advantage, Monari says the teachers’ repayment culture shows a strong sense of responsibility and appreciation for education.

“Teachers are a model for repayment discipline. They understand the value of education because they live it every day,” he said.

At the same time, the Universities Fund said it has offered scholarships to more than 464,000 students studying in courses aligned with President William Ruto’s Bottom-Up Economic Transformation Agenda.

In the 2024/25 financial year, the Universities Fund channelled funding for courses in priority areas linked to the bottom-up agenda. 

Most scholarships went to students pursuing studies in entrepreneurship, digital innovation, agriculture, housing, and healthcare. 

Acting CEO Dr. Edwin Wanyonyi said the distribution of funding shows a deliberate effort by the government to align higher education with national development prioritie

Most beneficiaries — about 234,279 students — are enrolled in programmes that promote entrepreneurship and small business growth under the Micro, Small, and Medium Enterprises (MSME) pillar. 

Another 152,326 students are studying in fields that strengthen the Digital Superhighway and Creative Economy, focusing on digital skills, innovation, and tech-driven job creation.

In agriculture, 34,820 students have been funded to support food security and agribusiness transformation, while 37,040 others are training in housing and settlement courses tied to the affordable housing programme. 

A further 5,803 students have been sponsored to pursue health-related programmes aimed at bolstering universal health coverage.

However, universities continue to face major challenges, including debts, pending bills, and governance issues that threaten their financial health.

Dr Wanyonyi said the Fund is exploring policy reforms, revenue diversification, and targeted bailouts to help stabilise the sector.

He added that the ultimate goal is to build a sustainable university financing system that produces skilled graduates.