Elite schools' parents feel the fee heat on dollar surge

For most wealthy parents in Kenya, international schools have always been an attractive option for their children’s education.

Interestingly, though, some of these schools take payment in their home currency, with those that have opened doors in Kenya recently exclusively accepting dollars or euros.

Sabis Runda, International School of Kenya, and Durham Kenya accept fee payments in US dollars. The Netherlands School Society and German School Nairobi take euros.

The weakening shilling against the dollar has, however, put a strain on some parents, forcing them to dig deeper into their pockets to pay for their children’s education.

A parent who was paying $9,000 (Sh981,000) for her five-year-old child in Stage Two foundational level at Durham Kenya in 2021, for instance, would today pay Sh1,125,000 for the same child at the current dollar exchange rate.

This is Sh152,550 more in less than two years, assuming the school fees are not reviewed upwards during this period. As of Monday this week, the dollar was retailing at Sh125.95.

The euro has also marginally gained against the shilling in the same period, rising from 129.68 in 2021 to the current 133.62 exchange rate.

This means that a parent who was paying paid 11,410 euros (Sh1,479,649) per learner in Classes One to Four at German School Nairobi in 2021, today, is paying Sh1,524,604 in fees for the same child. This is also with the assumption that school fees have remained intact within the period.

While parents may pay school fees in shillings in some of these schools, to do this, they are required to show proof of Kenyan citizenship.

One parent tells the BDLife that while the dollar is an attractive option to pay for those who want to try out ‘‘an international product’’, it makes locals who cannot afford dollars ‘‘helpless.’’

‘‘Is this really fair and should we [accept] because we thirst for foreign investment?’’ Poses the concerned parent.

Read: Why parents pay a premium in Kenya's top schools

Sue Small, the head teacher of Durham School, argues that it is safer and logical for international schools in the country to base their fees on foreign currency.

Others say the fast depreciating shilling (against the dollar) in recent years has also made it risky for foreign investments.

‘‘Durham Kenya has been set up with foreign investment and all its financing is structured in US dollars,’’ Ms Small explains.

‘‘It is for this reason that the school linked its income currency to its liability currency and based its fees in US dollars from the very beginning,’’ the head teacher adds.

At Sabis International School Runda, one of the newest international schools in the country, learners pay between $7,200 (Sh899,568) and $11,000 (Sh1.4 million) per academic year.

The International School of Kenya (ISK) charges in dollars, with parents paying an application fee of $400 (Sh50,000).

In addition, parents and guardians part with a ‘‘one-time capital levy’’ of $10,000 (Sh1.2 million) to cover capital expenses and enrolment.

From pre-kindergarten to Grade 12, learners pay $20,000 (Sh2.5 million) for what the school calls ‘‘life centred educational programme.’’

There is also an annual capital levy of $1,450 (Sh181,000) and bus transport of $2,200 (Sh275,000).

In Kenya for the last 50 years, the Netherlands School Society accepts payment only in euros.

At DSN, in the 2022/2023 academic year, learners between Grade One and Four were expected to pay € 11,400 (Sh1.5 million) while those between Grade Five and Form Two paid up to €13,400 (Sh1.8 million) per year.

Additionally, parents pay a non-refundable €1,000 (Sh134,000) administration fee.

Not all international schools in Kenya, however, demand payment in a specific currency. Crawford, Porterhouse School, and French School of Nairobi accept payment in the local currency.

Also known as the Lycée Denis Diderot, the French School of Nairobi offers French and British curriculums from kindergarten to baccalaureate levels.

The school charges a standard fee to Kenyan and French nationals, with other nationalities paying more.

In the 2022/2023 academic year, for instance, a preschool learner at the school paid Sh700,000 per year while a high school student parted with Sh1.4 million.

At ISK, parents must show proof of Kenyan citizenship to pay fees in the local currency.

‘‘Parents have a wide choice of curriculum, fee levels, and types of school in the private school market in Nairobi,’’ says one head teacher when asked why her school accepts payment only in dollars.

Kenya’s wealthy rank education for their children as one of the top investments. Most of their children study in a local international school or abroad.

The Knight Frank Wealth Report 2022 shows that one of the reasons why Kenya’s super-rich apply for a second passport or new nationality abroad is to access good education for their children.

With an ever-growing expatriate community and an increasing number of dollar millionaires, many international schools have been set up to meet this demand.

Also read: Strathmore joins network of leading world business schools

Most developed countries with a mission in Kenya have at least one school in Kenya, bringing the number to about 40 international schools.

The head teacher of Durham says ‘‘most parents pay directly in US dollars’’ but that the school also accepts ‘‘payment in Kenya shillings at the bank exchange rate.’’

‘‘It is important that the genuine commercial reasons for basing school fees in foreign currency are not misunderstood nor misrepresented,’’ says Ms Small, adding, ‘‘We announced to all parents last [year] that the school fees would be frozen for the next academic year. There would be no fee increase up to July 2024, at least.”

Some schools have had to allow parents flexible payment period arrangements, including extended timelines, as a remedial strategy.

The origins of international schools can be traced to 1924. However, they have grown in the past 20 years. They were Originally built to ensure that expatriates and diplomats sought a “western” education for their children while working in far-flung countries.

But over the years they have found a new purpose: educating the children of wealthy Kenyans so that they can compete for spots in western colleges and job opportunities globally.

The setup of the schools has also led to growth in some areas.

‘‘As a foreign investor in Kenya, Durham has invested extensively in facilities and staff over the past two and a half years. The school has already created direct employment for 56 Kenyan staff members in teaching and support roles,’’ says Ms Small.

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