Graduates repaying university loans could keep more of their pay if MPs adopt a proposal to cut the maximum monthly deduction from 25 per cent to 15 per cent of their earnings.

The proposal came up on Tuesday, October 27, when the National Assembly Committee on Education began taking views from stakeholders on seven education bills. These include the Tertiary Education, Placement and Funding Bill, 2026, which would replace the Higher Education Loans Board (HELB) with a new Tertiary Education Funding Authority (TEFA).

What the bill says

Clause 49(4) of the bill says the new authority "shall deduct not more than twenty-five per cent of the loanee's emoluments" when recovering a loan. That matches the current practice, under which employers take up to a quarter of a borrower's basic salary through the check-off system and send it to HELB.

Education lobby group Mizizi Elimu Africa told the committee that a 15 per cent ceiling would leave graduates more take-home pay after tax and other statutory deductions, and would encourage more borrowers to repay, Kenyans.co.ke reported. Other stakeholders backed the lower figure as more workable for young workers on entry-level salaries.

Other proposals before the committee

  • The Elimu Bora Working Group wants 2.5 per cent of all taxes collected by the Kenya Revenue Authority set aside for an education fund, with grants offered alongside loans.
  • Some groups called for bursaries to be scrapped in favour of fully free education.
  • The Elimu Yetu Coalition asked for the qualifications of refugee teachers to be recognised.
  • World Vision Kenya pushed for free, nutritious meals for learners without a separate levy on parents.
  • The Kenya Catholic Secretariat said schools should keep the power to suspend and expel learners, while the ban on corporal punishment stays in place.

Why it matters to borrowers

Thousands of graduates are repaying HELB loans, and many say high deductions on modest salaries leave them with little money for rent and transport. Some borrowers avoid formal employment or fall into default to escape the check-off. The proposed cut is meant to make repayments manageable and improve recovery rates, which would keep money flowing back into the fund for new students.

The proposal is not yet law. The committee will consider the submissions, together with views gathered at county public hearings, before tabling its report on the seven bills in the National Assembly. MPs can amend the clause, keep the 25 per cent ceiling or settle on a figure in between.

Photos: Kenyans.co.ke. Thumbnail design: HAMASTA MEDIA.