Why fee inflation matters
Kenyan school fees rise faster than general inflation, often 6 to 8% per year for private schools and 5 to 6% for public secondary boarding schools. A KES 200,000 annual fee today becomes roughly KES 270,000 in 5 years, KES 360,000 in 10 years. The gap between paying for kids born today versus paying out of pocket later is large. Saving early bridges it.
Where to keep school fees savings
- Money market fund: 9 to 15% per annum, T+1 redemption. Most flexible.
- SACCO education account: 8 to 12% via dividends, locked. Great if you are already a SACCO member.
- Treasury bonds (long): 13 to 18%, locked for the term. Match the maturity to when fees fall due.
- Education insurance policy: tax relief but typically low return. Useful as a forced-savings backstop, not the main vehicle.
Approximate Kenyan school fee benchmarks (2026)
- Public primary: KES 0 to 30,000/yr (free + extras)
- Public secondary day: KES 25,000 to 50,000/yr
- Public secondary boarding: KES 40,000 to 75,000/yr
- Private primary: KES 50,000 to 250,000/yr
- Private secondary: KES 150,000 to 500,000/yr
- Public university: KES 30,000 to 120,000/yr (HELB-supported)
- Private university: KES 200,000 to 800,000/yr
- International schools: KES 800,000 to 2,500,000/yr