Nairobi-based private school funder Ed Partners Africa has raised Sh205 million ($ 1.9 million) to provide credit facilities to affordable and underserved private schools.
The funds were obtained from Acumen, I&P and Zephyr with additional participation from existing investors.
Ed Partners is targeting affordable private schools that provide education to low-income populations with school fees between Sh16,000 ($ 150) and Sh54,000 ($ 500) per year.
It also seeks to make loans to educational institutions seeking loans ranging from Sh215,000 ($ 2,000) to Sh7.6 million ($ 70,000), payable in up to six years.
Ed Partners CEO Amos Mwangi said the company is targeting Kenya’s affordable private school sector, which generally lacks credit from mainstream lenders.
“Affordable private schools have found it extremely difficult to access formal credit due to the arduous application processes and limited guarantees. Traditional financial institutions lack the operational know-how to lend to this segment of schools, further exacerbating an already credit-starved sector, ”said Mr. Mwangi.
He added that the organization aims to close this gap through school-focused loans and through a center-based model and communication in which the company’s relationship managers work closely with the school’s leadership. throughout the credit process.
The loans are designed for specific end uses such as classroom expansion, purchase of school buses, construction of sanitary facilities, among others.
Ed Partners, which was founded in 2018 by Lydia Koros and David FitzHerbert, has to date offered Sh162 million ($ 1.5 million) in loans to 142 private schools that educate 41,000 students.
FitzHerbert said the new funds will also help catalyze additional loans to the sector seeking to recover from the negative effects of Covid-19.