How to Set Private School Fees in Kenya: A 7-Step Method

Last reviewed: 28 October 2026

Knowing how to set private school fees is the difference between a school that grows and one that struggles to pay teachers by the third term. Many proprietors copy the school down the road, but that school may have cheaper rent, fewer staff or a fee level that is quietly losing money. This guide gives you a seven-step method built on your own costs, a worked example, and the legal process to follow before you raise fees, based on the Basic Education Act and a September 2026 High Court ruling.

On this page

1. How to Set Private School Fees: The 7 Steps
2. A Worked Example
3. The Law on Fees and Fee Increases
4. Collecting What You Charge
5. Frequently Asked Questions

How to Set Private School Fees: The 7 Steps

Step 1: List every annual cost

Use a full year, not a month, because some costs come once a year. Include:

• Salaries and statutory deductions for teaching and support staff, usually the biggest line. Our guide to private school teacher salaries helps you benchmark.
• Rent or loan repayments on land and buildings.
• Utilities, cleaning, security and internet.
• Learning materials, exercise books, lab and ICT consumables.
• Maintenance and a replacement fund for desks, computers and the bus.
• Licences, insurance, audit, marketing and school software.

Keep optional services (meals, transport, boarding, trips) separate. They should be priced on their own.

Step 2: Set a realistic enrolment

Price on the learners you expect, not on full capacity. A new school might plan on 60–70% of its seats; an established one on last year’s numbers plus modest growth.

Step 3: Work out cost per learner

Divide total annual cost by expected learners. This is your break-even fee if every parent pays in full.

Step 4: Add an arrears allowance

Few schools collect 100% of fees. If you usually collect 90%, divide your break-even fee by 0.9. Ignoring arrears is the most common reason schools that look profitable on paper run short of cash.

Step 5: Add a margin and reserve

A margin pays for growth, repairs and bad years. Decide a target (for example 10–20%) and add it on top. If you have a bank loan, make sure repayments are already in Step 1.

Step 6: Check the market

Now compare your number with schools that parents in your catchment really consider. Use our private CBC school fees guide and real fee structures on the site for reference. If you are far above, cut costs, add visible value (smaller classes, better results, transport) or target a different group of parents. If you are far below, you may be underpricing.

Step 7: Build the fee structure

• Band by level. Junior school (Grades 7–9) costs more to run than lower primary because of labs and specialist teachers.
• Split tuition from extras. Show lunch, transport and activity fees as separate lines so parents can see what they pay for.
• Set payment rules. Termly instalments, due dates, a sibling discount if you can afford it, and how you handle late payment.

A Worked Example

The figures below are illustrative only, to show the method. Use your own numbers.

• Expected learners: 160, so break-even is KSh 52,500 a year.
• Arrears allowance at 90% collection: 52,500 ÷ 0.9 = KSh 58,333.
• 15% margin: 58,333 × 1.15 = about KSh 67,100 a year, or roughly KSh 22,400 a term.

If schools nearby charge KSh 15,000 a term, this school must either cut costs, grow enrolment or offer something parents clearly value more. That is a business decision, but at least it is made with real numbers.

The Law on Fees and Fee Increases

Private schools set their own fees, but not in a vacuum. Section 55 of the Basic Education Act, 2013 requires every private school to establish a parents-teachers association, and the Third Schedule lists among the association’s functions to discuss and recommend charges to be levied on pupils or parents.

In September 2026 the High Court dismissed a challenge by two Oshwal Academy parents to a 6% fee increase. As reported by Nation on the Oshwal fees ruling, the court held that a private school may increase fees as long as the applicable procedure is followed. The school showed AGM minutes approving the increase in May 2026 and gave parents about three months’ notice before it took effect.

The practical lessons for owners:

• keep a properly constituted parents’ association and minute its meetings;
• explain the reasons for any increase, such as salaries, utilities or new facilities;
• give written notice well before the new term;
• put fee and refund terms in a clear enrolment contract.

Collecting What You Charge

A good fee is worthless if it is not collected. Automated SMS reminders and a portal that matches M-Pesa payments to learners cut arrears and the hours your bursar spends reconciling. Anademy by Ananke Digital builds fee portals, reminders and report templates for private schools, and you can request a quote on our school owners page. See also our guide on reducing fee arrears.

Starting a school from scratch? Read the cost of starting a private school and our guide to school loans from Kenyan banks.

Frequently Asked Questions