Latest today: HELB reminds employers to remit student loan deductions

This story has significance for readers across Kenya and beyond.

- HELB issued a notice reminding employers of their monthly obligation to deduct and forward employee loan repayments

- Employers must upload remittance details through the HELB Employer Portal before generating a payment slip and completing the transfer

- HELB introduced a KSh 3,000 monthly penalty per employee for non-compliance, backdated to each worker's date of employment

The Higher Education Loans Board (HELB) has put employers on notice to ensure all loan deductions are forwarded to the board by the 15th day of each month, warning that failure to comply carries financial consequences.

The board issued the reminder in a notice dated Friday, August 14, directing employers to calculate and deduct the applicable monthly repayment amount for each staff member who holds a HELB loan, then transfer the total to the board within the stipulated deadline.

"Ensure all HELB loan deductions are remitted by the 15th of every month to maintain timely compliance," HELB stated in the notice.

How Employers Must Process Remittances

Before making any payment, employers are required to log into the HELB Employer Portal and upload a remittance list.

The process involves opening the Remittance tab, downloading a CSV template, entering the relevant employee and repayment details, and submitting the file for processing.

Once the data is uploaded, employers must verify and confirm the information before the system generates an electronic payment slip. The platform automatically excludes any employees whose loan accounts have already been fully settled. HELB stressed that payments must match the exact figure shown on the generated e-slip for the transaction to be accepted.

Employers who have not yet registered on the portal have been directed to create accounts immediately.

New users can search for their organisation by typing part of its name; where the organisation does not appear, a registration option is available to add it. Once registered, employers gain access to a dashboard showing remittance history, employee records, and compliance certificates after staff details are verified.

Penalties and KRA Partnership

HELB also reminded newly registered employers that once they bring on staff carrying outstanding loans, they are obligated to notify the board and begin deductions from the employee's salary, wages, or other remuneration without delay.

In March, HELB introduced a KSh 3,000 monthly penalty for each employee whose loan remains undeclared or whose required deductions are not remitted on time.

The fine is backdated to the worker's date of employment, meaning employers who have been non-compliant for extended periods could face significant cumulative charges.

Separately, HELB announced last month that it is working towards a partnership with the Kenya Revenue Authority (KRA) to improve the recovery of unpaid loans from borrowers in the informal sector, taking advantage of KRA's broader data systems and reach to trace defaulters who fall outside the formal employment framework.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.