The report shows that education remains a critical aspect for families globally, with the number of loans taken for education purposes increasing by nearly 50% during the back-to-school period
A vast majority of families in Kenya opted for mobile loans to pay for fees and other school related services as the tough economic market continued to pile pressure on households.
A report by mobile money app, Tala, compiled from loan applications between 2019 and 2023, shows that the number of loans taken for education purposes increases by nearly 50% during the back-to-school period.
The anonymized self-reported data indicates that the surge in the uptake of school loans was mostly experienced during the back-to-school months of January, August and September, with close to 10-15 % of all loans taken by customers in Kenya used for school-related purposes.
The company’s head of user research Teddy Kahiro, said on Monday, January 29 that in Kenya, close to 50% of all education loans are taken by women.
“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. Consequently, this contributes to the overall well-being and productivity of their families,” said Kahiro.
He added: “One notable discovery emerging from the research encompassing all four markets within Tala’s operational scope is the predominance of women in getting education loans.”
The data also shows that education remains a crucial aspect for families globally. This is since, while public education is prevalent in Kenya, it entails supplementary expenses such as supplies, uniforms, transportation, and textbooks, as well as Competency-Based Curriculum assignments and activities that incur extra expenditures, 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 said.
“We are dedicated to providing comprehensive financial solutions and addressing the increasing costs of education. We firmly believe that such initiatives are essential for the improvement of our communities and are pivotal in shaping a more equitable and promising future for all,” he added.
