Special Edition for Schools, Parents & Small Businesses

Greetings, and welcome to this special midweek edition, where we cover the latest updates, practical tips, and analysis on everything happening in Kenya’s education sector!

As schools prepare to close on April 2 for the end of Term 1, this edition takes a closer look at the challenges and opportunities that lie ahead for Term 2. From fee payment pressures and financial planning for parents, to credit solutions for schools and business opportunities for education suppliers, we explore what the new term holds.

We also bring you the latest developments in the sector.

Let’s get started!

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Term 1 Ends as Schools, Parents Face Fee Pressure Ahead of Short April Break

Schools are set to close on April 2, marking the end of the year’s first term in what has been a challenging period for many, including institutions, parents and small businesses across the country.

This term, delays in school fee payments significantly strained operations, especially as schools navigated ongoing pressure not to increase fees or chase students back home while still meeting their financial obligations.

For many administrators, keeping schools running smoothly proved difficult. Capitation delays further worsened cash flow challenges, forcing some institutions to operate on tight budgets. 

In these circumstances, many were left at a crossroads, not knowing whether to send learners home or find alternatives. At the same time, the alternative, which is seeking credit, has also remained limited, with traditional financial institutions often hesitant to lend to schools due to perceived risks, leaving the learning institutions exposed.

As a result, some institutions are turning to flexible lenders to finance infrastructure projects or invest in assets such as school buses. One of the institutions that is offering such flexible funding to private school owners is Jackfruit Finance, which allows for flexible termly repayments, not monthly.

On the other hand, Term 2 is expected to bring even greater financial pressure, particularly for parents. With capitation delays affecting school operations, many institutions are now demanding upfront payment of full-term fees. 

This comes at a time when households are already grappling with a tough economic environment, making it harder to meet these obligations.

The short April holiday, lasting just 26 days, adds to the urgency. Parents will have limited time to mobilise resources, especially those with outstanding fee balances from Term 1. 

For many families, this creates a compounding financial burden, as arrears must be cleared alongside new term payments.

Despite these challenges, the school holiday period presents opportunities for certain businesses. Suppliers of school-related goods and services often use this window to engage institutions, secure tenders, and prepare for the upcoming term. 

Demand for items such as uniforms, learning materials, and transport services typically rises ahead of reopening.

However, just like schools, many small and medium-sized businesses face difficulties accessing affordable credit to scale operations or meet demand. 

This has led to increased interest in alternative financing models that offer quicker approvals and more flexible repayment terms.

In this context, access to reliable financing is becoming a critical factor for both schools and businesses. Institutions need liquidity to maintain operations and invest in growth, while suppliers require capital to meet demand and remain competitive.

Have you ever taken a loan for your SME where the interest stays fixed, no matter how fast you repay?

With Jackfruit, you don’t get a fixed rate. You can access up to Ksh1 million and only pay interest on the outstanding balance, meaning the faster you repay, the less interest you are charged. Apply for your loan here.

Here are the other top stories and latest developments in the education sector

• Education CS Julius Ogamba has warned schools against denying students KCSE registration over unpaid fees, stating exams are government-funded. The Ministry of Education says non-compliant school heads risk disciplinary action.

• TSC has warned of a Ksh1.4 billion shortfall in funding for teachers’ medical cover under the Social Health Authority (SHA), raising concerns over potential disruption of healthcare services nationwide for teachers and their families. Read more

• Secondary school principals have raised alarm over a severe shortage of teachers for new Grade 10 STEM subjects under the Competency-Based Education system, warning that TSC has yet to supply enough specialised instructors.

• At least 2.6 million learners risk dropping out due to a Ksh4.8 billion funding shortfall in the school feeding programme, Education PS Julius Bitok told Parliament, warning the initiative needs Ksh7.8 billion annually to sustain operations. Read more

• TSC says over 43,000 intern teachers risk losing jobs after a court ruling declared the programme unconstitutional. The commission must either terminate contracts or seek funding to absorb interns permanently, with concerns over teacher shortages and budget strain.

• KUPPET has threatened to boycott national exams over low pay and delayed payments by the KNEC, risking disruption of marking and supervision this year. Read more

• Education CS Julius Ogamba says 330 secondary schools received no Grade 10 students, while 2,400 enrolled fewer than 20, despite 2.4 million slots. The Ministry of Education is reviewing placement and may consider closures and mergers.

Money254 Education Stories & Tips

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The Money-Saving Question Most SME Owners Fail to Ask Before Taking a Loan

Imagine you’ve just landed a big contract and need capital fast, but cash is tight. You approach a lender, confident in your business, only to realise you don’t have all the required documents.

When you look elsewhere, you risk accepting an expensive loan that could eat into your profits. Many SME owners make the mistake of focusing only on the advertised rate, with logbook loans often showing rates of around 5% per month.

But not all interest is calculated the same. In this video, we explain why a reducing balance loan — like the one offered by Jackfruit — can be cheaper than a flat-rate loan, and how to avoid overpaying on interest.

That's it for this edition of Wallet Wellness. We hope these financial tips have added some energy to your hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week, and watch out for Money Weekly in your inbox this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Money254 editorial team.