Kopa School Fees! Study Shows Struggling Kenyans Borrowed To Pay Fees In H1, 2024
A recent survey by digital lender Tala has highlighted the struggle many face in paying for education. The study, conducted in the first half of 2024, shows that education costs are a primary driver of borrowing among Kenyans, alongside business needs and daily living expenses.
Key Findings
- Education is a top reason for borrowing among Kenyans
- 51% of respondents used digital credit providers to bridge income gaps
- The average borrowed amount ranged from KES 10,000 ($77.34) to KES 20,000 ($154.68)
These figures paint a clear picture: Kenyan families are increasingly turning to digital lenders to ensure their children’s education continues uninterrupted.
While inflation in Kenya has shown signs of easing – dropping to 4.3% year-on-year in July 2024 from 4.6% in June – the impact on household budgets remains significant. The survey reveals:
- 56% of Kenyans have been forced to cut back on expenses due to the high cost of living
- Food prices continue to be a major pain point for consumers
Despite these challenges, there’s a silver lining. Compared to 2023, Kenyans report improved financial well-being and less dissatisfaction with their economic situation.
The Role of Digital Lenders
In this economic landscape, digital lenders like Tala are playing a crucial role in bridging financial gaps. Annstella Mumbi, Tala Kenya General Manager, emphasizes the importance of their services:
“Quick access to funds can mean the difference between financial stability and hardship for many households. We not only enable our customers to survive this period but also empower more people to unleash their economic power.”
The reliance on digital lending for education expenses highlights a critical issue in Kenya’s education system. While these services provide a much-needed lifeline, they also underscore the need for more sustainable solutions to education funding.
