HELB Confirms Use of Auctioneers to Recover Unpaid Student Loans, Tells Defaulters to Negotiate

The loans board responds after a viral post revealed a borrower’s debt had been forwarded to an auctioneering firm, sparking public debate over its enforcement methods

The Higher Education Loans Board (HELB) has moved to defend its loan recovery practices after a social media post ignited public concern over the alleged use of auctioneering firms to pursue student loan defaulters.

The debate was triggered on Monday, February 23, when a loan beneficiary shared a message on X — formerly Twitter — revealing that their outstanding balance of Ksh210,015.79 had been referred to Swipe Auctioneers for recovery. The post warned the borrower to settle the debt immediately to avoid further enforcement action, and quickly drew widespread reaction from Kenyans questioning whether HELB had adopted overly aggressive tactics against those struggling to repay.

HELB Stands Its Ground

In its response, HELB did not distance itself from the use of auctioneers but instead reaffirmed that loan repayment is a statutory obligation — one it takes seriously, both legally and in principle. The board stressed that funds repaid by past beneficiaries are directly channelled into financing the education of current and future students, framing repayment not merely as a legal duty but as an act of national solidarity.

Rather than adopting a combative tone, however, HELB used the moment to appeal to borrowers facing financial hardship, encouraging them to come forward and engage the board before matters escalate to third-party recovery.

“Repaying your HELB loan helps empower the dreams of another deserving Kenyan,” the board stated, adding that it was willing to work with borrowers to agree on repayment plans suited to their individual circumstances.

Room to Negotiate

A key message from HELB’s response was that defaulters are not without options. The board clarified that borrowers experiencing genuine financial difficulty can reach out directly to discuss and agree on structured repayment arrangements — a point many Kenyans may not be aware of, particularly those who have been avoiding communication out of fear of punitive action.

How to Repay Your HELB Loan

Alongside its clarification, HELB outlined several repayment channels available to borrowers:

Via USSD, borrowers can dial *642# on their mobile phones to register or log in, select the loan repayment option, enter the desired amount, and complete the transaction using their PIN — no internet connection required.

The HELB mobile application offers a more feature-rich experience, allowing users to pay their loans, monitor outstanding balances, and track their full payment history, all from a smartphone.

For those who prefer desktop access, the HELB self-service portal provides an online repayment option where users can log in, navigate to the repayment section, enter the amount, choose a payment method, and finalise the transaction.

The Broader Conversation

The viral post has reignited a longstanding debate about the challenges faced by graduates in a tough job market, and whether HELB’s enforcement mechanisms adequately account for economic realities on the ground. While the board’s willingness to negotiate repayment plans offers some reassurance, critics argue that many borrowers remain unaware of this option — often only discovering it after their accounts have already been escalated to recovery agents.

For now, HELB’s message is clear: repay, engage, or risk escalation. But it has also left the door open for those willing to take the first step.