Career advice · Updated October 2026
HELB Repayment When You Get a Job: Salary Deductions, Penalties and Clearance
Your first payslip is a good day, until you spot a HELB deduction you were not expecting, or worse, a penalty letter because no deduction was made at all. HELB repayment for employed graduates runs mainly through salary check-off, but the law puts duties on both you and your employer, and the costs of getting it wrong fall mostly on you. This guide explains when repayment starts, how much can be deducted, what penalties apply, and how to get your compliance and clearance certificates.
When repayment starts
Section 15 of the Higher Education Loans Board Act says that within one year of completing your studies, or earlier if the Board recalls the loan, you must:
- inform HELB of your contact address;
- begin repaying the loan with any interest accrued; and
- if you are in formal employment, authorise your employer to deduct the repayment and send it to HELB.
HELB’s repayment page repeats the one-year rule for undergraduate loans and notes that you can make voluntary payments before or after you finish studying. Jielimishe loans, for salaried students, are different: HELB says they are due for repayment immediately upon disbursement.
On interest, HELB said in August 2026 that the rate for undergraduate, TVET and KMTC loans remains 4% a year, dismissing reports of a 12% rate.
Your employer’s three duties
HELB summarises an employer’s obligations as “Disclose, Deduct and Discharge”. The Act sets them out in sections 16 and 17:
| Duty | What the law says |
|---|---|
| Disclose | Inform HELB in writing within three months of employing a loanee (s.16(1)(a)) |
| Deduct | Once HELB confirms you are a loanee, deduct the amount HELB instructs (s.16(1)(b)) |
| Discharge (remit) | Pay each deduction to HELB within 15 days after the end of the month (s.16(2)) |
The penalties fall on the employer when it fails:
- An employer that fails to deduct, or deducts but does not remit on time, is charged 5% of the total repayment for each month or part of a month it remains unpaid (s.17(1)).
- An employer that fails to notify HELB that it employs a loanee commits an offence, with a fine of at least KSh 3,000 for each month of failure (s.17(2)).
How much can be deducted
HELB’s FAQ says you must contact HELB for a billing schedule to know how much your employer will deduct. The Act sets a ceiling: section 19 says the Board shall not deduct more than one quarter of your basic monthly salary.
The deduction shows on your payslip as a separate line. Our guide to reading your payslip shows where to find it, and the guide to salary deductions in Kenya explains which deductions an employer may lawfully make. To estimate a monthly instalment from your balance, Business Radar has a HELB loan repayment calculator.
The penalty for not paying
The big risk is on your side. Under section 15(2), a loanee who fails to meet these duties is liable to a fine of not less than KSh 5,000 for each loan deduction that remains unpaid. HELB’s FAQ puts it plainly: for each month that remains unpaid, you pay a fine of not less than five thousand shillings.
That is why the most important rule on the HELB FAQ is this one: “Loan repayment is your responsibility.” If your employer stops deducting while you still have a balance, the penalty can still build up on your account.
Step by step: what to do when you start a job
- Check your balance. Download your statement from the HELB portal or mobile app. Business Radar explains how to check your HELB loan balance.
- Tell HR you are a HELB loanee in your first week, and give them your ID number. Do not assume they will find out.
- Confirm the first deduction. Check that a HELB line appears on your payslip within the first few months.
- Check that the money arrives. Compare your HELB statement with your payslips every few months. A deduction on the payslip that never reaches HELB is the employer’s fault under the Act, but you are the one who will notice first.
- If you change jobs, tell the new employer at onboarding and check your statement for any gap between the last deduction at the old job and the first at the new one.
- If you lose your job or work for yourself, keep paying directly so penalties do not build up.
Paying directly
HELB lists these channels for direct payments:
- USSD: dial *642#, log in, select Loan Repayment, then M-Pesa;
- the HELB mobile app’s pay loan option;
- the loanee self-serve portal at hef.co.ke, under Loan Repayment.
If you are abroad, HELB’s FAQ lists payment by credit card or direct transfer to its Citibank account.
Behind on payments? The 80% penalty waiver
Under its “Ndoto Zetu, Jukumu Letu” loan recovery campaign, HELB is offering up to 80% off outstanding penalties. In its August 2026 notice, HELB said the waiver applies to borrowers who clear their outstanding loan balances in full. Business Radar’s HELB penalty waiver FAQ covers how to apply. The waiver does not reduce the principal, so it suits people who can pay off the balance with a lump sum, such as from a SACCO loan or a bonus.
Compliance certificate vs clearance certificate
Job adverts, especially in the public service, often ask for a HELB certificate. There are two:
- Compliance certificate. For people still repaying. HELB says you can download it from the HELB portal as long as you have been consistently complying with loan repayment. If you have trouble, email contactcentre@helb.co.ke or call 0711 052 000.
- Clearance certificate. For people who have finished paying. HELB says only HELB, not your employer, can confirm that your loan is fully repaid. Request it through the HELB portal, or visit a Huduma Centre or HELB’s office at Anniversary Towers.
If you overpay, the refund comes from HELB, not your employer. HELB says to submit a loan inquiry form with confirmation from your employer that deductions have stopped, and that refunds take about 60 days from the request.
See our clearance certificates checklist for the other documents employers ask for.
Key takeaways
- Repayment starts within a year of completing your studies, or earlier if HELB recalls the loan.
- Your employer must tell HELB within three months of hiring you and remit deductions within 15 days after each month.
- HELB cannot deduct more than a quarter of your basic monthly salary.
- Each unpaid deduction can attract a fine of at least KSh 5,000, so check your statement regularly.
- Clear your full balance to qualify for HELB’s up to 80% penalty waiver.
Starting your first job? Read our guide to getting your first job after university and work out your take-home pay with the net salary calculator.
Frequently asked questions
When should I start repaying my HELB loan?
Under section 15 of the HELB Act, repayment starts within one year of completing your studies, or earlier if HELB recalls the loan. Jielimishe loans for salaried students are due for repayment immediately upon disbursement.
How much will HELB deduct from my salary?
HELB issues a billing schedule that sets the monthly amount, so contact HELB to confirm yours. Section 19 of the HELB Act caps deductions at one quarter of your basic monthly salary.
What is the penalty for not paying HELB?
Under section 15(2) of the HELB Act, a loanee who fails to repay is liable to a fine of not less than KSh 5,000 for each loan deduction that remains unpaid. Employers that deduct but do not remit on time are charged 5% of the amount for each month it stays unpaid.
How do I get a HELB compliance certificate for a job?
Download it from the HELB portal if you have been consistently complying with repayment. If you have problems, email contactcentre@helb.co.ke or call 0711 052 000. If you have finished paying, request a clearance certificate instead.
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