According to recent data from the money-lending platform Tala, the uptake of school loans has increased in Kenya over the last four years amid tough economic times.
The data shows that student loan applications increased by about 50 percent between 2019 and 2023.
The report shows that educational loan takeout is high during the back-to-school months of January, August, and September.
Notably, Tala User Research Manager Teddy Kahiro said women take up to 50 percent of all education loans in Kenya.
“In general, research on spending patterns suggests that when women have the opportunity to use financial services such as credit, households tend to direct increased financial resources toward children, education, and healthcare.”
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“Consequently, this contributes to the overall well-being and productivity of their families,” he said.
Additionally, he said that while public education is prevalent in Kenya, it entails supplementary expenses such as supplies, uniforms, transportation, and textbooks, as well as CBC-based assignments and activities that incur extra expenditure, all of which families must personally bear.
“The findings from this research remind us of the financial burden tied to these expenses. The rising costs of education add a layer of challenge for both parents and students in effectively managing their finances and maintaining peace of mind,” Kahiro stated.
