Launching the UASA Kenya SACCO: A Replicable Model for Affordable Education Finance

Access to affordable financing remains one of the biggest challenges facing low-fee private schools (LFPS) across Africa. High interest rates, rigid collateral requirements, and a limited understanding of the education sector often lock school proprietors out of mainstream financial systems. In Kenya, however, a transformative and locally grounded solution is emerging. It is a model anchored in collective action, legal legitimacy, local ownership, and strategic partnership.

The IDP Foundation (IDPF), in partnership with the Unified APBET Schools Association-Kenya (UASA-K), supported the creation and operationalization of a Savings and Credit Cooperative Organization (SACCO). This marks the completion of a comprehensive technical assistance process and the launch of a locally owned financial institution designed specifically to serve LFPS.

Understanding UASA-Kenya

The Unified APBET Schools Association-Kenya (UASA-K) is a legally registered national association under the Societies Act of Kenya, representing schools operating within the Alternative Provision of Basic Education and Training (APBET) framework. It serves as a unifying umbrella body that brings together non-formal and low-cost private schools, many of which are otherwise excluded from formal education systems and financial services.

APBET schools in Kenya are low-cost, non-formal institutions that provide basic education to marginalized children, primarily in communities that operate beyond the reach of formal education systems. These schools play a critical role in complementing government efforts by expanding access to quality basic education where formal provision remains insufficient (https://www.apbet.co.ke/).

As an association, UASA-Kenya is committed to:

• Advocacy for the recognition and inclusion of APBET schools in national education policy

• Capacity building and the professional development of member institutions

• Promotion of quality, equity, and access in education

• Development of sustainable, member-driven solutions to sector challenges

Through its structured leadership and national reach, UASA-Kenya stands as a legitimate voice and a strategic platform for APBET schools across the country, providing tangible value to its members.

UASA SACCO: The Brainchild of UASA-K

Emerging directly from the vision and strategic direction of UASA-Kenya, the UASA Savings and Credit Cooperative Organization (UASA SACCO) is the association’s flagship financial innovation. It is a brainchild designed to address the long-standing financing gap affecting member schools. The UASA SACCO is a member-owned financial cooperative established to mobilize local savings and provide affordable, accessible credit tailored specifically to the needs of APBET schools.

A Strategic Partnership for Impact

Recognizing the persistent financing challenges faced by LFPS, UASA-Kenya entered into a strategic partnership with the IDP Foundation to explore sustainable, locally driven solutions. The partnership was formalized through a Memorandum of Understanding (MoU), aligning both organizations around a shared goal: expanding access to affordable education finance while strengthening institutional capacity. A key outcome of this collaboration was the decision to establish a member-owned SACCO capable of mobilizing local savings and providing loans at lower and more flexible interest rates than traditional microfinance institutions.

Notably, UASA-Kenya hosted the IDP Foundation team from Ghana and the United States, including the President, during a high-level Stakeholders’ Dinner, underscoring the depth of the partnership and the shared commitment to its success.

Why a SACCO? A More Inclusive Financial Model

Microfinance Institutions (MFIs) and Savings and Credit Cooperative Organizations (SACCOs) play important but distinct roles in expanding financial access. MFIs are commercial financial institutions, legally required to operate sustainably and generate returns for their shareholders.

A SACCO, by contrast, is a member-owned cooperative regulated under a different government framework. Its capital comes primarily from member deposits, and its governance rests with the members themselves. Members contribute savings, set policies, determine interest rates within regulatory guidelines, and collectively approve loan decisions. UASA-K identified a SACCO as the more inclusive and sustainable option, one owned and governed by school proprietors themselves.

The UASA SACCO was designed to:

• Extend loans to member schools at lower and more flexible interest rates than MFIs

• Reach LFPS that may not qualify for traditional financial institution loans

• Pool savings locally to strengthen collective financial resilience

• Keep governance and decision-making within the education community itself

Technical Assistance and Advisory Support

To ensure the SACCO was built on a strong technical and regulatory foundation, IDPF engaged Swinton Consulting Limited, a Kenya-based firm, to support the complete setup and operationalization of the UASA Kenya SACCO in line with national SACCO regulations and best practices.

A gap analysis conducted by Swinton Consulting identified the need for at least three full-time staff members to effectively manage SACCO operations, along with several other structural needs, including:

• Governance and leadership: Establishing an appropriate governance structure, restructuring the SACCO Board into a nine-member body, developing board charters, and setting up key sub-committees.

• Policies and procedures: Designing and documenting essential operational, financial, credit, risk management, and data protection policies to ensure regulatory compliance and operational clarity.

• Human resource systems: Conducting a gap analysis, developing job descriptions, and supporting the recruitment framework for core SACCO staff.

• Financial management and capitalization: Supporting the development of financial management frameworks, capitalization strategies, and transparent reporting systems.

• Product development: Designing and refining loan and savings products tailored to the needs of LFPS, including clear eligibility criteria, pricing, and repayment structures.

• Capacity building: Training board members and management on SACCO governance, compliance, and operational responsibilities.

With Swinton Consulting’s technical support now complete, the UASA Kenya SACCO has reached full operational readiness. Core governance structures, policies, and products are in place, and the SACCO is positioned to begin offering savings and loan services to its members.

The conclusion of this technical assistance marks a major milestone for UASA-K and its members. It transforms a shared vision into a functioning financial institution designed to serve the education sector.

Why This Model Matters

The UASA Kenya SACCO demonstrates how private school associations can build and embed sustainable financial institutions that directly serve their members’ needs. There are thousands of private school associations representing LFPS across Sub-Saharan Africa and beyond, and the potential to replicate this model for the benefit of many more schools is significant.

By investing in governance, capacity, and local ownership, the UASA SACCO offers a powerful and scalable blueprint for organizations seeking to create inclusive, community-driven financial solutions that strengthen education systems from the ground up. It is, in every sense, a transformative and member-driven solution born from the community it serves.

By: Raphael Akomeah (Head of Edufinance & Quality, IDP Foundation), & Leadership of UASA-SACCO, Kenya

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