School Reopening: Why Many Parents Are Struggling With Fees This Week

On Sunday, April 27, the day before schools reopened, bookshops and uniform retail centers experienced low traffic, as many parents delayed purchases. Unlike previous years, when last-minute shopping was common, this time the timing of the school reopening was cited as the primary reason for reduced activity, given that many individuals had not yet received their salaries.

Additionally, the rising costs of school supplies and uniforms further constrained parents' ability to meet educational expenses. Many households responded by adopting stricter budgeting practices.

"The economy is tough right now. Some items that retailed at Ksh100 now go for Ksh200, and if you have multiple children, that adds up — and that’s not even counting school fees and other charges," one parent lamented.

Another parent complained that some schools had asked students to report back with laptops, items that many households found financially unattainable.

Elimu Bora Working Group Exposes Illegal Fees

A survey conducted by the Elimu Bora Working Group (EBWG) between March and April this year showed that parents are being forced to shoulder additional charges, which it classified as illegal, in 90 percent of schools across the country.

The survey, conducted in 370 primary and junior secondary schools, which are constitutionally mandated to offer free education, showed that illegal fees ranged from Ksh500 to Ksh25,000, disguised as charges for desks, remedial lessons, development projects, and more.

"The CS must also take stern action against any school heads and county directors of education found culpable of enforcing illegal levies," EBWG stated.

On the other hand, school heads lamented earlier that the government's perennial delays in disbursing capitation funds were forcing them to find alternative ways to keep schools running.

For instance, in March, principals noted that 21 percent of Term 1 capitation, translating to Ksh2,303 per learner, had not been disbursed. The delayed capitation totalled Ksh14 billion.

How Parents Can Build Their Education Fund

This predicament has exposed a gap in parents' savings habits and their preparedness for their children's schooling. It is vital for parents to establish a plan to build an emergency education fund, particularly for when their children enter secondary and tertiary education.

Saving early provides numerous benefits, including reducing dependence on salaries or well-wishers. Here are key options to boost your Emergency Education Fund:

1. Education Insurance Policy

This policy allows parents to develop a savings plan while taking insurance coverage, ensuring that their children's education needs are met even in the event of the parent's untimely death or disability. Parents have two options: buying an endowment plan — a savings plan that pays a lump sum to the family upon the policyholder's death — or buying a whole life policy with education coverage, which provides lifelong protection.

2. Saving in a Money Market Fund (MMF)

A Money Market Fund (MMF) is a type of mutual fund that invests in short-term, low-risk securities like treasury bills, fixed deposits, commercial papers, and high-quality corporate bonds. Parents can choose to lock their investments until their children join school, or use it as an emergency fund offering liquidity. The funds earn interest over the investment period.

3. Joining Saccos

Parents can also join Saccos early in their careers and begin building savings through regular deposits. By the time their children reach school-going age, they will have accumulated substantial savings and be eligible for dividends.

Saccos often invest in profitable ventures such as shares, bonds, or real estate using members' savings and distribute the earnings as dividends.

4. Investing in Assets

Some breadwinners prefer to invest in assets such as parcels of land or real estate early on, with the plan to sell them later when their children reach high school age. This strategy allows them to cash in on the capital gains from the asset. However, it is crucial that investors conduct thorough research before making such investments.