Digital credit provider MyCredit has secured KSh 1.4 billion in funding from global impact leaders Oikocredit and BlueOrchard to lend to private schools in Kenya.
- •The financing covers various purposes, including working capital, asset finance-such as the purchase of educational resources and infrastructure development-, and green financing to support sustainability initiatives.
- •The loan offers a tenor of 72 months (6 years) and provides up to Kshs. 10 million, tailored to the specific needs of each school.
- •Oikocredit is a social impact investor and worldwide cooperative, while BlueOrchard is an impact investment management company.
“By offering customized loan solutions, we aim to reduce the financial barriers that many private schools face, helping them improve their operations, expand their reach, and continue providing quality education to students across the country,” David Wangai, Executive Director of MyCredit Limited, said.
“This funding initiative represents a transformative step toward reshaping the future of education in Kenya. We look forward to the positive impact it will have on the education sector and the broader community,” he added.
According to the Kenya National Bureau of Statistics, the number of private primary schools grew by 773% between 2003 and 2017, compared to a growth of only 33% for public primary schools during the same period. The number of private secondary schools grew by 216%, compared to 154% for public secondary schools.
Official records reveal a significant surge in the number of private schools nationwide from 7,742 in 2014 to 16,594 in recent years, reflecting an increasing demand for alternative education avenues.
This growth has been driven by factors such as a growing population, increased demand for quality education, and limited land availability for building public schools. The roots of this educational shift can be traced back to the education reforms of 2003, when enrollment in public schools surged by 1.3 million new pupils in a single year.
