Private school financier raises 205 million shillings for new loans



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Private school financier raises 205 million shillings for new loans


Ed Partners Africa has raised 205 million shillings ($ 1.9 million) to provide credit facilities to affordable and underserved private schools. PHOTO FILE | NMG

Nairobi-based private school financier Ed Partners Africa has raised 205 million shillings ($ 1.9 million) to provide credit facilities to affordable and underserved private schools.

The funds were raised from Acumen, I&P and Zephyr with additional participation from existing investors.

Ed Partners targets affordable private schools that provide education to low-income populations with tuition fees ranging from Sh16,000 ($ 150) to Sh54,000 ($ 500) per year.

It also seeks to lend to educational institutions seeking loans ranging from 215,000 shillings ($ 2,000) to 7.6 million shillings ($ 70,000), repayable in up to six years.

Ed Partners CEO Amos Mwangi said the company focuses on Kenya’s affordable private school sector, which is typically deprived of credit from traditional lenders.

“Affordable private schools have found it extremely difficult to access formal credit due to arduous application processes and limited collateral. Traditional financial institutions lack the operational knowledge to lend to this school segment, further exacerbating an already lean sector, ”Mwangi said.

He added that the organization aims to close this gap through school-focused lending and a hub and branch-based model where the company’s relationship managers work closely with the management of the company. school throughout the credit process.

The loans are designed for specific end uses such as expanding classrooms, purchasing school buses, building sanitary facilities, among others.

Ed Partners, which was founded in 2018 by Lydia Koros and David FitzHerbert, has so far offered 162 million shillings ($ 1.5 million) in loans to 142 private schools training 41,000 students.

Mr FitzHerbert said the new funds would also help catalyze additional lending to the sector seeking to recover from the negative effects of Covid-19.


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