Students with Higher Education Loans Board (HELB) loans could get relief in repaying their loans following proposals to reduce the maximum monthly repayment.
The National Assembly Committee on Education on Tuesday, October 27, began hearing stakeholders' proposals on several education bills before the house, to determine what needs to be changed, discussed, and eventually passed as law.
Among the proposals the committee received is to reduce the maximum monthly deductions for repaying higher education loans from their current rate of 25 per cent to 15 per cent.
According to Mizizi Elimu Africa, a lobby group on education, the move will encourage beneficiaries to repay the loans, while boosting their take-home pay after deductions and other tax obligations.
Tanzania lawmakers during an address by President William Ruto on May 5, 2026.
PCS
Currently, HELB can deduct up to a quarter of your basic salary to repay its loans, with the employer required to deduct the specified instalment and remit it to HELB through the check-off system.
Clause 49(4) of the Tertiary Education, Placement and Funding Bill, 2026, caps student loan deductions at 25 per cent of a loanee's earnings, setting a limit on the amount that can be recovered from graduates in employment.
According to the proposals, the Tertiary Education Funding Authority (TEFA), which is set to replace the Higher Education Loans Board (HELB), shall deduct not more than 25 per cent of a loanee's emoluments when recovering an education loan.
"In making deductions for loan repayment, the Authority shall deduct not more than twenty-five per cent of the loanee's emoluments," the bill states.
The proposal, however, has been rejected by education stakeholders, who suggest a 15 per cent deduction is more viable.
Besides the reduction in HELB deductions, other stakeholders have also proposed several changes to the Bills before the House, including abolishing bursaries in favour of fully free education and introducing grants alongside student loans.
Elimu Yetu Coalition called for the recognition of qualifications held by refugee teachers, arguing for their inclusion in the country's education system.
Meanwhile, the Elimu Bora Working Group proposed allocating 2.5 per cent of taxes collected by the Kenya Revenue Authority (KRA) to the education fund to strengthen financing, alongside introducing grants to complement student loans.
World Vision Kenya, on its part, called for free and nutritious meals for learners in private schools, proposing that parents should not be charged a separate meal levy.
On school discipline, the Kenya Catholic Secretariat called for institutions to retain appropriate disciplinary powers, including suspension and expulsion, while maintaining the ban on corporal punishment.
The Committee will consider the views gathered from stakeholders alongside submissions received during the county public participation forums as it prepares its report on the seven Bills before the full house.
University students accessing HELB services.
Photo
SMG