HELB Debunks Viral “Auctioneer” Threat as Fake, Warns of Rising Loan-Related Scams=

The Higher Education Loans Board (HELB) has issued an urgent public clarification after a viral message falsely claimed the agency had deployed auctioneers to seize property from loan defaulters. The message, widely circulated across WhatsApp, Facebook, and X, triggered panic among graduates before HELB dismissed it as a coordinated extortion attempt targeting vulnerable borrowers.

The False Claim That Sparked Nationwide Alarm

The viral message alleged that HELB had authorized private auctioneers to track down defaulters, seize household goods, and enforce repayments without court oversight. It further instructed recipients to pay an “immediate processing fee” via mobile money to halt enforcement action.

The tone—urgent, threatening, and procedural—closely mimicked official communication, giving it credibility among recipients already anxious about student debt obligations. Within hours, the message had spread widely, prompting online outrage and fear among thousands of graduates.

HELB’s Official Response: “No Auctioneers, No Fees”

In its official response, HELB categorically disowned the message, stating:

• It has not contracted auctioneers to recover loans from individual defaulters

• It does not charge any processing or activation fees to stop enforcement

• All official communication is issued only through verified platforms and its official portal

The board further warned that the message was part of a phishing and extortion scheme, designed to exploit fear and urgency to extract money from unsuspecting borrowers.

How HELB Actually Recovers Loans

Contrary to the claims in the viral message, HELB’s legally established recovery framework is structured and procedural:

• Employer-based deductions for formally employed graduates

• Voluntary repayment plans for self-employed or unemployed borrowers

• Compliance enforcement through legal channels, not informal seizure of assets

While HELB has, in past policy discussions, considered publishing names of long-term defaulters, there is no verified policy supporting random asset seizure through auctioneers without due process.

Why the Scam Was So Believable

The speed and scale of the panic reveal a deeper structural issue: widespread anxiety around student debt in a constrained job market.

Kenya’s youth unemployment challenge, combined with rising living costs, has left many graduates financially exposed. In that environment, even unverified threats can feel plausible—especially when framed in bureaucratic language.

HELB remains one of the country’s most critical education financing institutions, having disbursed over KSh 100 billionto students since its inception. However, the sustainability of the fund depends on consistent loan recovery—placing pressure on both the institution and borrowers.

A Growing Pattern Across East Africa

Authorities and financial experts warn that this incident is not isolated. Similar scams targeting student loan beneficiaries have emerged across East Africa, particularly in Uganda and Tanzania, where loan boards face similar repayment challenges.

These scams typically follow a pattern:

• Impersonation of government agencies

• Use of urgency and fear

• Requests for small “processing” payments via mobile money

• Fake links designed to harvest personal data

Public Advisory: How to Stay Protected

HELB and cybersecurity experts are urging borrowers to take precaution:

• Verify all communication directly through official HELB channels

• Ignore unsolicited payment requests, especially those sent via SMS or social media

• Do not click unknown links claiming to offer debt relief or enforcement suspension

• Report suspicious messages to HELB or relevant authorities

The agency has indicated it is working with law enforcement and cybercrime units to trace those behind the scam.

A Broader Policy Question

Beyond the immediate fraud, the incident has reignited debate about how student debt is managed in fragile economic conditions.

For many graduates, HELB represents both opportunity and obligation. The challenge for policymakers is balancing financial sustainability with empathy—ensuring repayment systems do not become sources of fear in an already strained economic climate.

The viral message may have been false—but the anxiety it exposed is real.