Private Schools borrowed over Ksh 14Billion to survive COVID-19

A report by the Kenya Private Schools Association (KPSA) has confirmed over Ksh. 14 Billion in loans was disbursed to stabilize private schools in 2020 – By Gerald Gekara.

A further 331 private schools with a student population of 65,600 and 1,200 teaching and non-teaching staff have completely shut.

“Private schools have had to borrow over Sh14 billion from commercial sources during this covid-19 period from May to December 3,” said KPSA chief executive Peter Ndoro.

The alarming statistics come at the backdrop of a mirage government commitment to bail out private schools with a Ksh. 7 Billion stimulus package.

The survey outlined plight of schools which had to access funding from their local banks to settle rent arrears as well as salaries for teachers.

“Even whatever they are giving us is not sufficient because they (banks) are not too sure whether our business will rebound and get back to normal,” added Mr Ndoro.

Private schools have born the brunt of the pandemic, being that students are their main source of income.

Other institutions have been forced to convert their school transport into PSV vehicles, while others ventured into transport logistics.

However, as schools reopened in January 4th, 2021, schools were forced to adhere to tough measures by the Ministry of Health, and Education that require them to install hand-washing points and expand infrastructure.

So far, Kenya is in its 10th month with the COVID-19 pandemic. The scourge has claimed over 1,700 lives, and infected close to 100,000 people nationwide.