Nairobi — The uptake of school loans has increased in Kenya over the last four years amid tough economic times.
Tala’s latest data on loan applications shows that student loans went up by about 50 percent between 2019 and 2023.
Notably, takeout of educational loans is high during the back-to-school months of January, August, and September, the report shows.
In Kenya, close to 50 percent of all education loans are taken by women.
“In general, research on spending patterns suggests that when women have the opportunity to use financial services such as credit, households tend to direct increased financial resources toward children, education, and healthcare,” Tala User Research Manager Teddy Kahiro said.
“Consequently, this contributes to the overall well-being and productivity of their families,” he added.
Education remains a crucial aspect for families globally.
While public education is prevalent in Kenya, it entails supplementary expenses such as supplies, uniforms, transportation, and textbooks, as well as CBC-based assignments and activities that incur extra expenditure, all of which families must personally bear.
“The findings from this research remind us of the financial burden tied to these expenses. The rising costs of education add a layer of challenge for both parents and students in effectively managing their finances and maintaining peace of mind,” Kahiro stated.
“At Tala, we are dedicated to providing comprehensive financial solutions and addressing the increasing costs of education. We firmly believe that such initiatives are essential for the improvement of our communities and are pivotal in shaping a more equitable and promising future for all.”