Parents are now spending two whole months with their children at home and some are making 'final' touches to travel upcountry and to new destinations to make the long December holidays memorable. To other parents, the holiday season is not only about bonding but glorious moments to bond with their children and provide them with details of the education policy plans rolled out to pave a successful future for them.
Parents make significant sacrifices to ensure their children have access to good quality education that will enable them to gain professional training relevant to the job market locally and abroad. The government is also credited with making heavy investments on education infrastructure and paying personnel at all institutions to ensure Kenya has a highly skilled workforce These collective efforts have contributed to Kenya's impressive literacy rate of 81.5 per cent, one of the highest in Africa, according to the Kenya National Bureau of Statistics.
While this figure is commendable, the cost of education has continued to rise forcing many families to prioritise their children's education while disregarding other important family issues like purchase of a house or land or saving for retirement. Actually, some are reeling in perpetual debt in their quest to fund through loans the education of their children.
Further, a study by a local digital loans operator reveals that every start of a new term in January, May and September reports the highest education loans taken to fund the purchase of uniforms, school shoes, books, CBC materials and to meet transportation costs. Another study by FinAccess Household Survey reveals that for many low-income households, the money for education is often supplemented by loans at 43 per cent.
This leads to the crucial topic of long-term planning for our children's education. Such planning not only ensures that children have access to quality education but also alleviates the financial strain on guardians. One of the most effective tools for achieving this is through an education insurance plan.
Education policies offer a range of benefits, with some providing a dual option that includes savings and a life insurance cover to protect the parent’s long life dream of educating a child. For instance, in the unfortunate loss of life of a parent, or when a parent suffers permanent disability, or critical illness, the policy ensures that a child's education is secure, allowing them to continue learning without disruption. Insurance covers the school fees expense for the entire period that the parent had specified while purchasing the education plan, making it easier for the family to meet life expenses at the time.
Education policies also help families prepare for the rising costs of education by providing a structured savings plan, ensuring that funds are available when needed. This kind of foresight reduces the financial burden on them and prevents the need for last-minute loans or withdrawals from other investments, which could compromise long-term financial goals. It also offers peace of mind by creating a clear, predictable path for financing a child's education, while providing the benefits of earning interest on money saved.
Mr Miyogo is the Managing Director of CIC Life Assurance
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