Investors' appetite for private schools grows

International education investors’ appetite for local private schools is growing rapidly.

According to Kenya Private Schools Association (KPSA) chief executive Peter Ndoro, seven international investors have expressed interest to acquire or buy stakes in 11 local schools.

Mr Ndoro told the Nation on the sidelines of a teachers training forum on the new curriculum at Uhuru Gardens Primary School in Nairobi on Tuesday that the schools’ managers were in talks with the investors.

However, he declined to disclose the names of the institutions, saying that the management of the schools will make the deals public once they reach agreements. “Six of the schools are in Nairobi while the rest are in other parts of the country,” he said.

Mr Ndoro defended foreign investors’ recent acquisition of local schools, saying the move was not driven by appetite for money.

“We...offer a service to the community; it clearly shows that Kenyans value the education of their children,” he said, adding that the country is a regional education hub.

QUALITY

The revelation comes in the wake of this month’s acquisition of the 40-year-old Riara Group of Schools. Sweden’s largest private school chain, Actus Education Holdings, acquired the schools, which were started by Dr Eddah Gachukia and her husband Daniel.

Mr Gachukia said it was a partnership and not an acquisition.

The price of Riara Group of Schools is yet to be disclosed and an attempt to get more information from Mr Gachukia was unsuccessful.

Mr Gachukia said in a statement to the parents that the new management will run the schools in partnership, with his children Alan and Juju as executive directors.

“As we embark on our vision to make Riara the foremost brand in East Africa, we want to assure you that the Riara ethos and values will be the foundation on which we build a bright future and continue to educate more children,” Mr Gachukia’s statement dated April 5 said.

He said the schools’ vision is to provide quality education.

SCHOOL FEES

The group has several schools, among them Riara Kindergarten School, Riara Primary School and Riara International School.

Others are Riara Springs Kindergarten School, Riara Springs Primary School and Riara Springs Girls’ High School. The family plans to set up a boys secondary school next year.

With the acquisition, there are fears of raising school fees since the investors will have to recoup their capital outlay.

Last year, UK-based investor Scholé Limited and Johannesburg Stock Exchange-listed ADvTECH Group acquired 40-year-old Makini Schools from founder Mary Okello in a transaction valued at Sh1 billion.

Mrs Okello surrendered management of the group of eight schools that host over 3,200 students to the new investors in April last year.

Makini Schools has since taken over Bhayani Nursery and Primary School in Kisumu in an expansion drive. The acquisition increased Makini’s Kisumu campuses to three.

EXPLOITATION

According to Ministry of Education figures, the number of private primary schools has more than doubled from 7,742 in 2014 to 16,594 this year.

Kenya National Union of Teachers (Knut) Secretary-General Wilson Sossion told the Nation that the government should not put resources, such as paying examination fees, in private schools since they are in business.

“Private institutions are doing business using children, and we will not allow foreign investors to come to Kenya to do such business. The government should channel its resources to public schools,” said Mr Sossion.

But Bonchari MP Oyioka John Oroo, a member of the education committee of the National Assembly, recently asked the government to support private schools.

“These institutions play a critical role in providing education to Kenyans and need total government support,” said Mr Oroo during a meeting on reforms between the committee and Ministry of Education officials.

He said the government’s decision to pay examination fees for candidates in private schools is a good gesture.