By Arnold Muthama
As the world marked the International Day of Education, Kenya stands
proudly among nations globally, committed to ensuring universal access to education
for every child.
This success can be attributed to the provision of free primary education and various
financial options that empower parents to educate their children up to the highest
levels of academic achievement.
Recent statistics from the United States Agency for International Development
(USAID) indicate that the percentage of adolescents out of secondary school in
Kenya is less than one percent, in stark contrast to the continental average of 33
percent in Africa.
This noteworthy achievement stands out against the prevailing trend in Africa. The
United Nations Educational, Scientific and Cultural Organization (UNESCO) in its
report has expressed concerns about the increasing number of children aged
between 12 and 17 who are out of school in the continent.
This rise is attributed to heightened conflict and political instability in various parts of
Africa, with a UNESCO report indicating a surge of 20 million out-of-school children,
reaching 98 million in 2022 compared to 2019. Globally, the estimated number of
out-of-school children has reached 244 million, with India, Nigeria, and Pakistan
leading the statistics.
In Kenya, government statistics indicate a consistent increase in enrollment numbers
across all levels from pre-primary to university, facilitated by a range of financial
options allowing parents or guardians to keep their children in schools.
Beyond relying solely on salaries or incomes, parents are increasingly turning to
affordable and easily accessible digital credits, alleviating the burden of paying
school fees.
A report dubbed ‘Finaccess Micro and Small Enterprises Tracker Survey’ by the
Central Bank of Kenya (CBK) in collaboration with the Kenya National Bureau of
Statistics (KNBS) and the Financial Sector Deepening Trust (FSD Kenya) highlights
that digital credit providers have not only fueled the growth of Micro and Small
Enterprises (MSEs) in the country but have also facilitated access to education for
hundred thousands of Kenyans.
For example, as Aspira, a Buy Now Pay Later (BNPL) firm, our data indicates that
Kenyans have accessed a total of Sh23 million from our Soma Loan facility. This has
contributed to the educational needs of students in 126 schools and higher education
institutions nationwide in the past year.
This underscores the significant contribution of Fintech in enhancing education
access in the country, providing relief to parents by circumventing stringent loan
conditions associated with mainstream financial institutions.
According to the CBK report, 23 percent of small business owners borrowed from
digital credit firms for education, with the majority being women. This indicates that
Fintech firms are instrumental in enabling women to advance their education.
The report also reveals that 62.3 percent of individuals use available options offered
by Fintech firms to save for education, further emphasizing their role in promoting
financial inclusivity.
Moreover, Fintech firms are reducing the closure rate of MSEs in the country,
ensuring that parents and guardians have sustained income for the education of their
children.
A report released by CBK seven years ago indicated that 46 percent of MSEs closed
within a year due to a lack of working capital, but the latest report shows a reduction
to less than 28 percent.
In fact, the survey indicates that approximately 4 percent of business owners close
their businesses to pursue further education.
As we celebrate the International Day of Education under the theme “Learning forLasting Peace”, it is crucial to ensure the safety of learners in schools against discrimination, gender violence, tribalism, and hate.
This resonates with the broader vision of education as a catalyst for peace and
societal harmony.
Kenya’s strides in education, coupled with the transformative impact of Fintech, offer
a compelling narrative of progress and inclusivity.
As the nation continues on this trajectory, it serves as an inspiration for others to
emulate, demonstrating the profound impact that a commitment to education and
innovative financial solutions can have on the well-being and future prosperity of a
nation.
The writer is Marketing Lead at Aspira.
