This archive report was first published on 8 July 2021.
As Kenyans continue to grapple with the effects of the Finance Act 2021, signed into law by President Uhuru Kenyatta on June 30, 2021, parents are feeling the pinch. With prices for basic commodities skyrocketing, it's becoming increasingly difficult for families to make ends meet.
Financial expert Nicholas Gichara, CEO of Somakazi, has some practical advice for parents in Nairobi looking to cut costs during these hard times. In an interview, he shared the following tips:
Move Children to Public Schools ¶
Private schools in Nairobi are notoriously expensive, with fees ranging from Ksh30,000 to Ksh70,000 per term. Gichara advises parents to consider moving their children to public schools, which are often more affordable.
He also encourages parents to change their negative attitude towards public schools, which he believes are not as bad as people make them out to be. One parent, who wished to remain anonymous, shared their own experience:
"I worked for a telco company, making good money, but both of them went to public schools from baby (class) to class 5. It enabled me to save for their high school education."
Take Up Medical Insurance for Your Children ¶
Children are prone to getting ill, and medical emergencies can be costly. Gichara advises parents to take up medical insurance for their children to reduce the risk of unexpected expenses.
He notes that frequent out-patient visits can add up quickly, and medical insurance can help alleviate some of the financial burden.
Pack Lunch for Your Children ¶
Schools often charge a lump sum for lunch, which can range from Ksh5,000 to Ksh12,000 per term. Gichara suggests packing lunch for your children instead, which can save you money and reduce waste.
Choose Schools Closer to Home ¶
The cost of transportation services offered by schools and private entities is high due to increased fuel costs. Gichara advises parents to choose schools that are closer to home, which can reduce transportation costs.
Avoid Shopping with Your Children ¶
Research shows that parents who shop with their children often struggle to stick to a budget or shopping list. Children can be persuasive, and parents may end up impulse-buying, adding unnecessary costs to their expenses.
