The senator said the country should prioritize giving young people opportunities to build their futures rather than pushing them deeper into debt immediately after completing their studies.
According to him, the existing 4 percent interest charged on HELB loans is unjust, particularly at a time when many graduates are unable to secure stable employment.
“We must scrap interest on HELB loans. Our youth deserve opportunity, not debt. When jobs are scarce, imposing a 4% interest burden is unjust especially on loans funded by taxpayers. President Ruto must act on this now,” Ledama stated.
His remarks come amid ongoing national discussions about the rising cost of living, youth unemployment, and the financial pressure facing recent graduates across the country.
Many university graduates have repeatedly raised concerns over difficulties repaying HELB loans due to limited job opportunities and delayed employment after graduation.
The senator argued that since HELB funds are supported through public resources and taxpayers’ money, the government should focus on easing repayment conditions instead of adding financial pressure on young borrowers.
Ledama’s statement has since sparked conversation online, with many Kenyans expressing mixed reactions over the proposal.
Some supported the call, saying it would help graduates recover financially and encourage access to higher education without fear of overwhelming debt after school.
Others, however, questioned how the government would sustain the student loan programme without interest charges, arguing that HELB requires continuous funding to support future students joining colleges and universities.
The issue of HELB loan repayment has remained a sensitive subject for years, particularly among unemployed graduates and young professionals beginning their careers.
In recent years, concerns have also emerged over penalties and listing of defaulters, with critics arguing that repayment policies should reflect the economic realities facing young people.
Kenya continues to face high youth unemployment rates, with thousands of graduates entering the job market every year amid limited employment opportunities in both the public and private sectors.
The situation has intensified debate over whether the current student loan structure adequately supports graduates transitioning into the workforce.