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Loan Repayment

Employer Obligations

Section 29 of the HESLGB Act states that all employers of any Former Student Loan Beneficiaries have the Legal Duty to:

  • Demand from every employee to declare whether they have a Student Loan at the Recruitment Stage.
  • Notify the HESLGB within 30 days of the Employment of a Graduate Employee who is a Former Student Loan Beneficiary.
  • Ensure that the Employee arranges with the Employer for the Monthly Deductions and Remittance of Repayment instalments to HESLGB.
  • Inform HESLGB, in writing, when so required by HESLGB, of the position, Rank, or Salary and changes if any, of an Employee who is a Former Student’ Loan Beneficiary.

Penalties for non-compliance

Section 30 of the HESLGB Act outlines the penalties imposed on employers who fail to comply with the recovery of loans from their employees

  • An employer who fails, without reasonable cause, to notify the Board that he has in his employment, a loan beneficiary after being made aware of such a fact, within the period specified under section 29, commits an offence and shall, on conviction, be liable to a fine of K1,000,000.
  • An employer who fails to deduct, or after having deducted a loan repayment from a loan beneficiary, fails to pay such deduction to the Board within the period specified under section 29, shall be liable to pay a sum equal to ten percent of the total amount of the monthly repayment for each month or part of the month that the repayment remains unpaid.