Avoid school fee panic by investing in education insurance plans #AD

According to the June 2025 Kenya Consumer Price Index and Inflation Report by the Kenya National Bureau of Statistics, education services recorded a 2.9% rise in costs over the 12 months leading to June 2025, with certificate course fees edging up 0.1% between May and June alone.

While these figures may seem modest at first glance, they point to a steady upward trend in educational expenses.

The situation becomes worse when inflation, economic disruptions, and unexpected income shocks, are factored in. The financial strain is highlighted in several reports, including the 2023 Sacco Supervision Annual Report by the Sacco Societies Regulatory Authority (SASRA), which notes a significant rise in borrowing by Kenyans to cover school fees and related expenses.

In 2023 alone, Kenyans borrowed KShs 96.33 billion for this purpose, accounting for 20.92% of all credit disbursed. Further, the FinAccess Household Survey revealed that 43% of low-income households need to take on loans to add to their savings for education.

The rising reliance on short-term borrowing to cover school fees points to a deeper issue: many families are unprepared for the steadily increasing cost of education.

Not having long-term financial planning leaves parents vulnerable to economic shocks that can disrupt their children’s learning journey. Education policy plans offer a practical and forward-looking solution.

By providing a financial safety net, these plans help ensure that a child’s education remains uninterrupted, even in the face of unforeseen circumstances. In today’s economic climate, they are fast becoming one of the most essential tools for parents committed to securing their children’s future.

Education plans offer a powerful combination of benefits: structured savings and financial protection. They not only help parents build up funds over time to meet future education costs, but also serve as a crucial safety net in the event of life’s uncertainties such as permanent disability, critical illness, or the untimely death of a parent.

In such difficult circumstances, these policies ensure that a child’s education remains uninterrupted, providing stability and safeguarding their future when it matters most.

The CIC Academia plan is a good example of this solution in Kenya. The plan merges structured savings with life and disability protection and is available for terms of 9 to 18 years, with premium payment periods ranging from 5 to 14 years depending on a child’s age and education timeline.

Premiums start as low as KShs 2,000 per month, offering accessibility to a broad range of families while enabling disciplined contributions toward future tuition needs.

• It offers a waiver of future premiums in the event of the policyholder’s death.
• In the case of permanent disability: CIC immediately pays 50% of the sum assured and any accrued bonuses, ensuring that the child’s education remains funded uninterrupted.
• If the insured’s child passes away, policyholders may nominate another child or opt for a refund of premiums paid.
• After at least three years of contributions, policyholders can access up to 85% of the surrender value as a loan, supporting liquidity without derailing the education plan.
• It offers a government-backed tax relief, where policyholders can enjoy up to 15% tax relief on monthly premiums, reducing the effective cost of contributions.

Taking advantage of the holiday

The December break is not only a time to rest and recharge, but also an ideal opportunity to reassess financial priorities.

Taking longer to think about school fees can lead to unnecessary debt, or interruptions in a child’s learning where income streams are affected.

By starting an education plan now, parents can spread out the financial commitment over time, reducing pressure and building a stronger financial safety net.