Kenyan parents, it’s time to rethink how to save for school fees #AD

By Ambrose Dabani

For years, education insurance policies have been a trusted tool for Kenyan parents planning for their children’s future. You’d sign up, contribute faithfully every month, and expect that by the time your child reached secondary or tertiary education, the funds would be ready to support their next step.

But as financial realities have shifted, many families, especially those in the informal sector, have found that traditional policies sometimes lack the flexibility to keep up and can be costly to back out of.

Once locked in, adjusting contributions in tough times hasn’t always been easy, and in some cases, the returns didn’t outpace inflation, meaning the savings couldn’t stretch as far as they hoped.

Add to that the often-complex policy language, and it’s no surprise that some parents began to explore alternatives—chamas, table banking, harambees. These felt more accessible, more communal, more in tune with daily life. But they also came with their own risks.

Now, a new generation of financial products, such as investment-linked education insurance plans, is emerging to meet the evolving needs of Kenyan households.

These plans build on the foundation laid by traditional education policies, but with added flexibility and growth potential that better align with modern financial realities.

Think of them as a smart blend between conventional education cover and investment tools like money market funds. They’re designed with today’s dynamic lifestyle in mind. You can start with as little as Ksh.1,000 a month and scale your contributions up or down depending on your income flow, whether from employment, business, or the hustle.

Most importantly, your savings don’t just sit idle—they are actively invested in financial markets, giving your money a better shot at keeping pace with or outpacing inflation.

Got an emergency? You can access your money. Lost your job or got sick? Some plans even have benefits that waive your premiums or keep the plan going without you having to pay a cent. And in the unfortunate event that you pass away, the plan continues to secure your child’s future. That’s serious peace of mind.

Let’s talk numbers. Some top Kenyan high schools now charge upwards of Ksh.150,000 a year. University fees? Even higher.

With inflation hovering above 5% and the shilling facing ongoing challenges, parents who continue to rely on traditional savings methods, like mattress savings or low-interest fixed accounts, may find it increasingly difficult to keep up with rising education costs.

The Central Bank of Kenya has warned us already that inflation is a structural challenge, especially for key sectors like education. That means your school fees will keep rising even if your income doesn’t. This creates a perfect storm for parents, stagnant savings yields against double-digit annual fee hikes at many institutions.

So, if you’re saving the same way your parents did in the ‘90s, you’re basically using a kabambe in a smartphone world.

Today’s parents aren’t the same as before. They’re digitally connected, money-smart, and no longer scared to ask the hard questions.

These modern investment-linked education plans come with mobile apps where you can track how your investment is doing in real-time. You get SMS updates, can top up using M-Pesa, and even adjust your goals with just a few taps.

No more blind saving. No more surprise shortfalls. Just transparency and control.

And here’s the best part: platforms now use simulation tools to show you how your money could grow over 5 or 10 years. You know what you’re working toward.

We were taught that saving meant playing it safe. But today, being smart is the new safe. Flexibility, growth, and control are the new trio of financial empowerment.

These investment-linked plans aren’t just for Nairobi’s uptown elite. They’re designed for real Kenyans, dealing with real economic ups and downs. Whether you’re a mama mboga, a boda rider, a teacher, or a startup founder, there’s a plan that can grow with you.

Insurance providers are also upping their game. We are investing in digital education, creating explainer videos, hosting Q&A forums, and simplifying the terms. You no longer need a finance degree to understand what you’re signing up for.

More awareness. More education. And less of that insurance mumbo jumbo. We have brought these plans closer to Kenyans, on mobile phones, in chama meetings, at church seminars, and yes, even on TikTok.

We are continuously innovating, combining education plans with a range of support solutions that fit the real needs of families. Why? Because a family’s financial life isn’t made up of just one plan. It’s an ecosystem.

We all want our children to go further than we did. That means planning smarter, not just harder. Education savings shouldn’t be a monthly burden. It should be an opportunity to grow wealth, teach our children financial discipline, and build long-term stability.

So, the next time school fees season hits and you find yourself asking, “Where did all the money go?” just remember, there are better ways now.

Invest in flexible, smart, growth-oriented plans that match your hustle and your vision for your child’s future. Your child’s dream isn’t waiting for next term. It’s waiting for your next smart move.

The writer is the CEO & Principal Officer Britam Life Assurance