MPs hear proposal to cap student loan deductions at 15 percent of pay
A new funding Bill would let the state take up to 25 percent of a graduate's pay each month to recover loans. Education groups want that cut.
Based on 3 sources, listed at the end of this story.
Students at Pwani University. File photo, 2026. Photo: Queen Asali / Wikimedia Commons, CC BY-SA 4.0, cropped
Education groups have asked MPs to cut the most that can be deducted from a graduate's pay each month to repay a student loan from 25 percent to 15 percent. The National Assembly Committee on Education began hearing views on Tuesday on the Tertiary Education, Placement and Funding Bill, 2026 and six other education Bills.
Under Clause 49(4) of the Bill, a new Tertiary Education Funding Authority, which is expected to replace the Higher Education Loans Board (HELB), could deduct up to 25 percent of a borrower's pay. Employers would make the deductions and send them to the authority. The cap limits how much is taken each month, not how much is owed.
Groups backing the lower cap, including the lobby group Mizizi Elimu Africa, say it would leave borrowers with more take-home pay and encourage them to keep repaying. Other groups have asked MPs to remove interest from the loans or to fund students fully through grants.
The committee will weigh the submissions alongside views collected at county forums and then report to the full House. No date has been set for a vote.
