Employers in Kenya could soon face a 5 percent penalty for each month they fail to remit student loan deductions made from employee salaries. This measure is part of the proposed Tertiary Education, Placement and Funding Bill, 2026.

• Employers will be required to notify the Tertiary Education Funding Authority upon hiring a student loan beneficiary and remit deductions within nine days after the end of each month.
• The proposed law aims to replace the existing Higher Education Loans Board (HELB) with a new authority to manage tertiary education funding and loan recovery.
• This initiative addresses the growing demand for student financing, with nearly 1.1 million students needing support in the 2025/26 financial year.