Babu Owino sponsors bill to reform HELB
Embakasi East MP Babu Owino has championed the plight of jobless graduates by sponsoring a bill aimed at reforming the Higher Education Loans Board (HELB).
The proposed amendment seeks to scrap interest rates and penalties on student loans, a move that could offer relief to thousands of young Kenyans struggling with unemployment.
Babu Owino, known for his vocal stance on education reforms, shared the list of bills he has sponsored on his official X account on Sunday, June 15, 2025.
The Higher Education Loans Board (Amendment) Bill, 2020, is among the key proposals he has tabled in Parliament, and it focuses on restructuring the HELB loan repayment system to better reflect the harsh economic realities faced by recent graduates.
The bill proposes to increase the amount of money disbursed to students to match the ever-rising cost of living and tuition fees. More significantly, it calls for the removal of interest and penalties imposed on HELB loans, especially for graduates who are yet to find employment.
“Higher Education Loans Board (Amendment) Bill, 2020 • This bill focuses on reforming the Higher Education Loans Board (HELB) to increase loan disbursements to match the rising cost of living and tuition fees. It also proposes scrapping interest and penalties on HELB loans to ease the financial burden on jobless graduates,” his statement read in part.
Defaulters
This comes at a time when HELB has intensified efforts to recover unpaid loans. In a recent meeting with the National Assembly’s Public Investments Committee on Governance and Education, held on Friday, May 30, 2025, HELB CEO Geoffrey Monari revealed that the board is finalising partnerships with law enforcement agencies.
The aim is to trace loan defaulters, both in Kenya and abroad, who are believed to be gainfully employed but have failed to start repaying their loans.
Monari explained that this move is not just about improving the fund’s financial health, but also about instilling a sense of patriotism and responsibility among former beneficiaries. He said HELB’s deteriorating financial position, worsened by widespread defaults, is threatening the fund’s ability to support current and future students from poor backgrounds.
“This is not just about finance,” Monari emphasised.
“It’s about fostering a sense of responsibility and patriotism among those who have benefited from the fund. Compliance ensures we can support future generations from needy backgrounds,” he added.
To address the growing default rates, MPs on the committee urged HELB to invest more in community engagement and awareness campaigns. They encouraged the board to highlight real-life success stories of beneficiaries and expand fundraising strategies beyond government capitation.
Besides the HELB amendment, Babu also sponsored other education-related bills, including the Legal Education (Amendment) Bill and the Kenya School of Law (Amendment) Bill, both of which aim to expand access to legal training and address existing bottlenecks in the system.
