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MP Babu tables bill to overhaul HELB system

MP Babu tables bill to overhaul HELB system
Embakasi East MP Babu Owino. PHOTO/Mpasho
In Summary

The proposed legislation seeks to eliminate interest charges and penalties on student loans a significant shift that could ease the financial strain on thousands of young Kenyans grappling with joblessness.

Embakasi East Member of Parliament Babu Owino has taken a bold step to address the challenges facing unemployed graduates by introducing a bill aimed at reforming the Higher Education Loans Board (HELB).

The proposed legislation seeks to eliminate interest charges and penalties on student loans a significant shift that could ease the financial strain on thousands of young Kenyans grappling with joblessness.

Known for his outspoken advocacy on education matters, Babu Owino unveiled a list of bills he has sponsored via his official X account on Sunday, June 15, 2025.

Among the standout proposals is the Higher Education Loans Board (Amendment) Bill, 2020, which seeks to realign HELB’s loan repayment framework with the current economic hardships affecting graduates.

Key features of the bill include increasing the amount of funding students receive to reflect the rising cost of living and education, and most notably, abolishing interest and penalties on loans, particularly for those who have yet to secure employment.

“This bill seeks to reform HELB by adjusting student loan amounts in line with inflation and tuition costs, while scrapping interest and penalties to ease the burden on unemployed graduates,” Owino stated.

This development comes amid renewed efforts by the Higher Education Loans Board (HELB) to recover outstanding student loans.

During a session with the National Assembly’s Public Investments Committee on Governance and Education on Friday, May 30, 2025, HELB Chief Executive Officer Geoffrey Monari disclosed that the board is in the final stages of forming collaborations with law enforcement agencies.

These partnerships are intended to help track down defaulters, both locally and abroad, who are suspected to be gainfully employed yet have not initiated loan repayments.

Monari noted that the initiative goes beyond financial recovery it’s also aimed at fostering a culture of responsibility and national loyalty among past beneficiaries.

He warned that HELB’s worsening financial situation, compounded by a high rate of default, is endangering the fund’s ability to continue supporting needy students.

“This is not just about finance,” Monari stressed.

Monari further underscored that the initiative is about cultivating a sense of duty and patriotism among those who have benefited from HELB, stressing that compliance is key to sustaining support for future students from underprivileged backgrounds.

In response to the rising number of loan defaulters, lawmakers on the committee urged HELB to ramp up community outreach and education efforts.

They recommended that the board share inspiring success stories of past beneficiaries and diversify its funding sources beyond government allocations.

In addition to the HELB reform bill, Babu Owino has also sponsored several other education-focused legislative proposals.

These include the Legal Education (Amendment) Bill and the Kenya School of Law (Amendment) Bill both aimed at broadening access to legal education and resolving systemic challenges within the sector.

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