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Digital lender MyCredit gets Sh1.4 billion funding
The Central Bank of Kenya (CBK) headquarters in Nairobi.
Digital credit provider MyCredit has received Sh1.4 billion in new funding from financiers Oikocredit and BlueOchard for lending to private schools.
The Central Bank of Kenya (CBK) licensed lender says the funding is expected to meet the diverse needs of private schools, including investments in technology and the upgrading of infrastructure and facilities.
Beneficiaries of the fund are expected to receive loans of up to Sh10 million with a tenor of 72 months/six years.
“By offering customised loan solutions, we aim to reduce the financial barriers that many private schools face, helping them improve their operations, increase their reach, and continue providing quality education to students across the country," MyCredit Limited Executive Director David Wangai said.
“This funding initiative represents a transformative step towards reshaping the future of education in Kenya. We look forward to the positive impact it will have on the education sector and the broader community.”
The number of private schools has been on the rise in recent years, mirroring the increased demand for alternative education avenues to public schools. The number of registered private pre-primary schools for instance rose to 15,205 in 2023 from 14,866 in 2022 according to data from the Kenya National Bureau of Statistics (KNBS) 2024 Economic Survey.
The number of private primary schools meanwhile soared from 8,838 to 11,739 in the same period while private secondary schools reached 1,267 from 1,255 previously.
The number of private vocational training centres and technical and vocational colleges meanwhile stood at 88, and 1,048 in 2023, respectively while the number of private universities was unchanged at 33.
The rise in the number of private education institutions is also attributable to other factors including a growing population, the increased demand for quality education, and limited land availability for building public schools.