Last reviewed: 25 October 2026
January is the hardest month for many Kenyan households: school fees, uniforms and books land just after the holiday spending. When savings fall short, parents look at financing. Banks now market specific school-fees products alongside general loans, overdrafts and credit card instalment plans. Below are the main types, what the lenders themselves publish about them, and the questions to ask before you sign.
On this page
1. Education loans from banks
Some banks offer loans marked for education. KCB’s unsecured loans page describes the Masomo loan for “educational undertaking”, open to customers who have held an active KCB account for at least three months and are salaried or have a guardian. KCB lists amounts from KES 100,000 to KES 4 million, repaid over up to 24 months. A loan this size suits annual secondary or university fees more than a single term at a day school.
Ask for the total cost before you commit: the interest rate, any appraisal or insurance fees, and the monthly instalment. Banks must give you this, and comparing the full cost across two lenders often shows a bigger gap than the headline rates suggest.
2. Personal loans and check-off loans
Many parents simply use a general personal loan. KCB says its unsecured personal loans run from KES 20,000 to KES 4 million over up to 48 months for salaried customers. Check-off loans, repaid through your employer’s payroll, run from KES 20,000 to KES 10 million over up to 120 months for government employees and staff of partner companies. Longer terms cut the monthly payment but raise the total interest. For fees that come round every term, a loan that outlasts the school year can pile up quickly.
3. Overdrafts and salary advances
For a short gap, a salary advance or overdraft can bridge a week or two until payday. KCB’s back-to-school page lists salary advances and overdrafts among its options for unexpected school costs, subject to qualifying. These products are cheap only if cleared fast. Rolled over month after month, they become expensive revolving debt.
4. Credit card instalment plans and school partnerships
Some banks partner with specific schools or retailers. KCB’s Kiota School page, for example, describes 100% financing of school fees over up to 12 monthly repayments on a KCB credit card for parents at that school, with approval advised within 24 hours. KCB also advertises Lipa na KCB card offers at selected outlets for school supplies. Ask your school whether it has an arrangement like this. They are usually only available to parents at partner schools.
5. Back-to-school offers from other banks
Equity Bank announces payment and financing options each term. A Capital FM report from August quoted the bank describing short-term credit for parents, a prepaid card for students’ pocket money, and financing for businesses that supply schools. Offers change from term to term, so confirm the current terms in a branch or on the bank’s app.
Before you borrow: five checks
- Total cost: ask for the total amount repayable, not just the rate.
- Term length: try to repay a term’s fees before the next term’s fees fall due.
- Who gets paid: some products pay the school directly, which avoids the money being spent elsewhere.
- Penalties: check late-payment charges and whether early repayment is allowed without a fee.
- Talk to the school first: many schools accept instalments for free if you agree a plan with the bursar in writing. That is almost always cheaper than borrowing.
A cheaper long-term alternative
If borrowing every January has become a pattern, a regular education savings plan or an education insurance policy may cost less over a child’s school years. Our guides to education insurance in Kenya and education savings plans versus savings accounts compare the options. For the fees themselves, see the 2027 school fees guide for parents.
This article is general information, not financial advice. Product terms are as published by the lenders in October 2026 and can change.