The Higher Education Loans Board (HELB) has issued guidelines regarding loan repayments for beneficiaries making self-directed installments, popularly known as the “Mdogo Mdogo” (gradual) payment plan.
HELB
Designed to support self-employed, unemployed, or informal sector workers, the flexible repayment model allows former university and TVET students to clear their outstanding balances over time without waiting for formal payroll employment.
Tuko News
Minimum Monthly Repayment Breakdown
Under the Higher Education Loans Board framework, loan repayment obligations depend on an individual’s employment status and mode of payment:
┌─────────────────────────────────────────────────────────────────────────┐
│ HELB Repayment Options & Monthly Thresholds │
├───────────────────────────────────┬─────────────────────────────────────┤
│ Borrower Category │ Repayment Rate / Minimum Amount │
├───────────────────────────────────┼─────────────────────────────────────┤
│ Voluntary “Mdogo Mdogo” Payers │ KSh 1,500 minimum per month │
│ (Unemployed / Self-Employed) │ (Flexible higher installments) │
├───────────────────────────────────┼─────────────────────────────────────┤
│ Formal Sector / Salaried Employees│ Up to 25% of basic salary via │
│ │ monthly statutory employer check-off│
└───────────────────────────────────┴─────────────────────────────────────┘
For voluntary individual repayments via M-Pesa or eCitizen portals, HELB sets a baseline minimum target of KSh 1,500 per month to ensure loan balances, interest rates (4% p.a. for undergraduate/TVET loans), and administrative fees decrease steadily over time.
Tuko News
Why Paying “Mdogo Mdogo” Matters for Beneficiaries
Making consistent voluntary payments offers key financial advantages for loan beneficiaries:
Mitigating Late Payment Penalties: Regular contributions prevent additional monthly non-payment penalties from accumulating on unpaid balances.
CalcKenya
Accelerating Compliance Clearance: Paying down balances systematically enables beneficiaries to obtain HELB Compliance Certificates or Clearance Certificates required for public sector employment and professional accreditation.
Flexible Budgeting: The “Mdogo Mdogo” approach permits loanees to pay amounts above the baseline whenever their financial situation allows, shortening total repayment timelines.
HELB
Step-by-Step: How to Pay HELB via USSD or Portal
Loan beneficiaries can make voluntary mobile payments directly using several digital channels:
HELB
Method Steps to Complete Payment
*USSD (642#)
1. Dial *642# on a mobile device.
2. Select Loan Repayment and choose M-PESA.
3. Enter the desired repayment amount and confirm via M-Pesa PIN.
HEF Portal (hef.co.ke)
1. Log in to your account at hef.co.ke.
2. Select Loan Repayment under the Self-Serve menu.
3. Enter payment details and follow the eCitizen M-Pesa STK prompt.
Official Information & Statements
To check your current loan balance or generate official statement summaries, visit the official Higher Education Loans Board Portal or access official user guides via HEF Kenya.
HELB
