This archive report was first published on 15 May 2020.
On May 15, 2020, Absa Bank Kenya announced a new initiative to support private schools affected by the COVID-19 pandemic.
As the pandemic led to the closure of institutions, several private schools struggled to pay teachers' salaries, risking being driven out of business.
Jeremy Awori, Absa Bank Kenya's managing director, stated that the bank is offering short-term financing options to help schools cover recurrent expenses such as salaries.
Under this arrangement, schools can access up to Sh10 million in unsecured overdrafts and short-term loans.
President Uhuru Kenyatta had directed all schools and higher education institutions to shut down in March to reduce the spread of the coronavirus.
Private schools had warned of a possible financial crisis and potential layoffs if the pandemic continued beyond April.
Now, the State remains uncertain when schools will reopen, further hurting the finances and outlook of private schools.
Unlike government schools, private schools rely entirely on school fees to operate, making them vulnerable to financial crises.
Some private schools are turning to online classes to generate income from school fees revenue as they fight for survival.
Absa is also offering loans for the purchase of IT hardware and software needed for online classes.
