In a landmark decision, the Kenyan High Court ruled in favor of student loan borrowers, ruling that HELB cannot require repayment amounts greater than twice the initial principal. The judgment comes following concerns over ballooning debts due to prolonged accumulation of interest and penalties.
A petition was filed by three former students, Anne Mugure, Davis Nguthu, and Wangui Wachira, alleging that HELB’s application of compound interest and monthly penalties had resulted in their debts ballooning substantially beyond the principal amounts initially borrowed. In one instance, a loan of KSh 82,980 had purportedly grown to exceed KSh 540,000. For another borrower, the loan amount nearly tripled within a few years.
The petitioners argued that charging unlimited interest and penalties infringed upon their socioeconomic and consumer rights under the Constitution, specifically the right to social security and education as well as protection from unfair practices.
The petitioners claimed that charging endless interest and fees violated their constitutional rights to social security and education, as well as their protection from unfair practices.
The High Court, in a significant judgment made by Justice Alfred Mabeya, confirmed an important protection for borrowers by stating that the Higher Education Loans Board (HELB) must follow the well-known Duplum rule. This principle, which is included in various financial and banking laws, protects borrowers by limiting the total amount a lender can collect, including interest, penalties, and other fees, to no more than the original loan amount given to the borrower.
The court’s decision states that once the total interest and penalties on a HELB loan equal the original loan amount, the lender cannot charge any more interest, penalties, or fees. This means that if a student borrower takes out a loan of KSh 100,000, the maximum total amount they can ever be required to repay, irrespective of how long the loan remains outstanding, is KSh 200,000 (the KSh 100,000 principal plus a maximum of KSh 100,000 in combined interest and penalties). The ruling effectively halts the spiraling effect of debt where interest and penalties continue to accrue indefinitely, making it impossible for debtors, particularly those facing financial hardship, to clear their obligations. The judgment gives important relief by making statutory lenders like HELB follow the “in duplum” rule. This adds a much-needed element of fairness and predictability to the process of paying back student loans.
The Court ordered that the pertinent provisions of the Higher Education Loans Board Act be interpreted in accordance with the “in duplum” rule, even though it did not invalidate them. The Court ruled that HELB’s prior practice was unconstitutional, citing violations of equality and nondiscrimination under Article 27 of the Constitution, as well as socioeconomic and consumer protection rights under Articles 43 and 46.
The Higher Education Loans Board (HELB) issued a statement on December 3, 2025, confirming its full compliance with the ruling regarding the in duplum rule. HELB also affirmed that all its loan accounts are now being managed in accordance with this rule. The board encouraged beneficiaries, alumni, and those currently defaulting on their loans to use its official channels for any necessary clarification or assistance.
In addition to assuring borrowers that current and future repayments will adhere to the legal interest cap, HELB highlighted its dedication to equitable, legal, and transparent loan management procedures.
For Kenyan student loan borrowers, the ruling is a significant triumph, offering crucial relief from burdensome debt and reaffirming the safeguarding of their consumer and socioeconomic rights. The decision also demonstrates the need for legal safeguards in lending practices, ensuring fairness even when dealing with statutory lenders. confirmed that it is now managing all its loan accounts
