Displaying items by tag: Education Financing

When COVID-19 first hit Kenya, the education sector was among the key economic sectors that were worst hit. Key stakeholders in the sector experienced the hard economic effects of the crisis, as the pandemic struck when some were expanding their operations, others had just established their schools and a vast majority were servicing loan facilities they had previously taken to support the growth of their businesses.

Things were looking grim with the uncertainty as to when everything would get back to normal not clear. However, schools that were able to engage their bankers received financial advisory services and possible reprieve that supported the institutions fulfill their financial obligations and survive, thrive and recover post the COVID-19 pandemic.

In the banking space, Equity is known to be a primary supporter of Kenya’s education system through its all rounded education support structure that incorporates education financing and offers comprehensive scholarships for secondary and tertiary education in TVET colleges, as well as local and global universities. This is being done through the Wings to Fly Scholarship Program, Elimu Scholarship Program, TVET Scholarship Program and the Equity Leaders Program.

Equity uses a two-prong approach on education financing that focuses on the institutions themselves and on the individuals involved in the day to day running of schools such as the proprietors, the teachers and the other primary players.

In general, schools require various components to run efficiently, including but not limited to collection accounts, payment solutions that enable them to receive and make payments, supplier management solutions, fixed and movable assets such as water tanks, fitted kitchens, modern laboratories, school buses, text books, classrooms and dormitories among others. All these items require finances to either purchase or maintain them.

Based on these needs, Equity has customized its school financing solutions to ensure institutions have access to savings solutions, collection accounts, loan solutions and digital banking solutions all aimed at making banking convenient, safe and affordable.

For instance, schools banking with Equity have access to a network of 190 branches, allowing them the ease and convenience of receiving school fees payment at any branch. In addition, parents and guardians can also make fees payments at any Equity agent or through Equitel, EazzyNet the EazzyBanking App or by dialing *247# and transferring funds from their account to that of the school. The funds will hit the collection account immediately, and parents can present the agent slip or their confirmation message to the school for receipting. 

Based on the value and nature of transactions on the collection accounts, the schools can then access both short- term and long-term financing to enable them meet the needs of their institutions in form of bank overdrafts, business loans, asset financing, plot purchase and mortgage financing, trade finance solutions and clean energy financing that enables them retrofit their kitchens with clean cooking solutions, among others. These solutions are offered at attractive interest rates and with flexible repayment periods, allowing school management ample time to plan their repayment.

For example, with the rising COVID-19 numbers, many schools are opting to invest in digital learning to ensure they continue serving their students. Schools looking to purchase tablets or laptops for their teachers and pupils/students can approach Equity for trade finance solutions such as LPO financing solutions, letters of credit or even credit guarantees enabling them to order the assets from different local and global suppliers, meet their financial obligations to the suppliers and have these delivered at affordable rates. All they need to do is speak to their Equity Credit Manager or Relationship Manager and get tailored- solutions that speak to their needs. Additionally, schools can access insurance solutions from their Equity branch covering them against property loss, fire, motor vehicle accidents and even health insurance for their staff all under one roof.

For the directors, managing and tracking the day-to-day financial operations of the school has been made easy through EazzyBiz. A secure and comprehensive Cash and Liquidity Management solution that allows businesses to make payments, track their payments, manage their cash flows and even integrate their accounts to their financial and human resources modules allowing them to make quick financial decisions and make salary, supplier and statutory payments with ease. What this means is that authorised signatories can make decisions, initiate and approve financial transactions on their various accounts with ease and in a secure manner

Equity’s digital banking platforms are safe and secure and the Bank has invested in two factor authentication and the use of One Time PIN (OTP) to ensure that fraudulent or unauthorized transactions are eradicated. 

For teachers and directors, they too can operate personal Equity accounts and enjoy the convenience and benefits of transforming banking into a lifestyle. They can open savings accounts allowing them to earn competitive interests on their savings as well as get financial advice on what investment options they can pursue. 

Equity has also made it easy for them to bank and borrow through their phones through the use of their Equitel lines, dialing *247# and through Equity’s mobile banking platform, the EazzyBanking App. The Eazzy Banking App and Equitel lines allow you to open accounts and   transact from the comfort of their homes or workplaces. One no longer has to walk to a physical branch just to check their account balance or to transfer funds from one account to another. One can download the EazzyBanking App from Google Play Store or App Store to enjoy these added benefits of banking with Equity. 

In terms of loan facilities, they can access EazzyLoans from as low as Ksh 100 to Ksh 1 million payable in up to 90 days and offered at flexible interest rates, enabling them to meet their immediate financial obligations.

It is clear that Equity is passionate about education financing and has innovated its financing model to suit the needs of a vast majority of the education stakeholders. Amos Gitau, the proprietor of Young Achievers Group of Schools, which has campuses in Embakasi, Imara Daima, Thika Road and Tassia and was a beneficiary of a loan restructure during the onset of COVID-19 says, “2020 was a tough year for us. I was contemplating closing the school, at some point; I even thought that we were going to be auctioned. However, Equity came to our rescue as they purposefully restructured our school loans and also gave us a bank overdraft facility that helped us sustain our teachers.”

Following the release of the 2020 KCPE results, 10,500 bright but needy scholars who scored 350 marks and above from all 47 counties; and those who scored 280 marks and above from 110 sub-counties and 15 informal settlements in urban areas are set to benefit from the 2021 Wings to Fly and Elimu Scholarships respectively.

Students meeting the selection criteria underwent a rigorous selection process in June 2021 spearheaded by the Wings to Fly Community Scholarship Selection Boards (CSSBs) and the Elimu Scholarship Community Scholarship Advisory Boards (CSACs). 

The exercise which is championed by local communities in partnership with Equity involves interviewing the scholars and their parents through the CSSBs and CSACs and thereafter home verification visits to ensure that the most deserving scholars are awarded with the scholarships.

With the awarding of this year’s scholarships, 36,804 students will have so far benefitted from the comprehensive secondary school scholarship run by the Bank.