The Higher Education Loans Board (HELB) has unveiled a new repayment option that allows borrowers to settle their student loans in small, flexible instalments using a simple USSD code, eliminating the need for internet access or a smartphone.
The initiative is expected to make loan repayments more accessible, particularly for borrowers living in rural areas or those using basic mobile phones.
The board announced the service on Thursday, encouraging beneficiaries to take advantage of the new platform under its “Lipa Kidogo Kidogo” campaign, which aims to make loan repayment easier and more convenient.
Borrowers can now repay loans using any mobile phone
According to HELB, borrowers only need to dial *642# from any mobile phone to begin making repayments.
The new platform has been designed to serve all borrowers regardless of the type of handset they use, allowing even those without smartphones to conveniently repay their loans.
The move comes as HELB continues to explore innovative ways of improving loan recovery while reducing barriers that have made repayments difficult for some beneficiaries.
How to access the HELB USSD repayment service
Borrowers wishing to use the new repayment option can follow these simple steps:
- Dial *642# on any mobile phone.
- Select the “Loan Repayment” option from the menu.
- Enter the amount you wish to pay.
- Confirm the transaction and complete the payment.
Apart from the USSD service, HELB borrowers can also continue accessing loan management services through the HELB Mobile App and the Loanee Self-Service Portal for account statements, balances and other services.
Flexible payments expected to improve compliance
Unlike traditional repayment methods that often require borrowers to make larger payments, the new service allows beneficiaries to pay smaller amounts whenever they are able.
Education financing experts say the flexible model could encourage more graduates to begin repaying their loans instead of postponing payments because of financial constraints.
The initiative is also expected to make it easier for borrowers working in the informal sector or those with irregular incomes to remain compliant with their repayment obligations.
HELB continues to battle loan defaults
The launch comes as HELB intensifies efforts to recover billions of shillings owed by former beneficiaries.
The board has consistently cited loan defaults as one of its biggest challenges, noting that delayed repayments affect its ability to finance students joining universities and colleges each academic year.
Government records previously indicated that more than 380,000 borrowers had defaulted on their loans by September 2025, placing significant pressure on the revolving education fund.
HELB finances thousands of students enrolled in public universities and other accredited institutions across Kenya. Beneficiaries are expected to begin repaying their loans one year after completing their studies, allowing the recovered funds to support future generations of learners.
The board says the introduction of the USSD repayment service is part of broader efforts to simplify repayment, improve compliance and ensure the sustainability of the country’s higher education financing programme.
