Overview:
Private schools in Uganda are set to benefit from a new digital financing system by Furaha Finserve and Cairo Bank that streamlines fee collection and reduces student dropouts.
KAMPALA, UGANDA — Private schools across Uganda are set to benefit from more predictable revenue streams following the expansion of a digital payment partnership between Furaha Finserve Uganda Limited and Cairo Bank Uganda Limited.
The collaboration, announced at the Education Finances Summit in Kampala, introduces a system where school fees are disbursed directly into school bank accounts within five minutes of a loan approval. This real-time payment model aims to stabilize school operations by addressing the persistent challenge of fee arrears.
Denis Musinguzi, the chief executive officer of Furaha Finserve Uganda, noted that many private institutions currently collect as little as 30% of expected fees at the start of a term. This shortfall creates severe operational stress and often forces schools to send learners home.
Our collaboration with Cairo Bank has enabled us to scale access to education financing across the country. We have kept over 30,000 children in class across over 5,000 schools out of a network of approximately 15,000 institutions, Musinguzi said.
The system allows parents to apply for loans via USSD code 16580# or a mobile application. The direct-to-school payment feature ensures that the credit is used strictly for its intended purpose.
This ensures transparency, eliminates misuse of funds, and gives schools confidence that financing accessed by parents directly supports a child’s education, Musinguzi added.
The partnership comes at a critical time for the sector. Statistics show that only 10% of children who began primary school in 2012 completed their S6 examinations in 2024, with financial barriers identified as a primary cause for dropouts.
Sylvia Jagwe Owachi, the acting managing director of Cairo Bank Uganda, said the bank is leveraging its Edu Bridge loan portfolio to provide the financial backbone for the platform.
By combining Cairo Bank’s financing strength with Furaha’s digital platform, we are creating a seamless ecosystem that benefits schools, parents and learners alike, Owachi said.
She further noted that the bank provides medium to long term investment financing of up to eight years to help schools build the laboratories and technology infrastructure required by the national curriculum.
This partnership represents a significant step forward in our commitment to enabling Ugandans access education financing and keep children in school, Owachi said.
George Mutekanga, the assistant commissioner in charge of private schools and institutions at the Ministry of Education and Sports, said the initiative aligns with the government’s goals for the education sector.
The competence-based curriculum requires significant investment in practical learning facilities. Partnerships like this are essential in ensuring private schools are adequately supported to meet these requirements, Mutekanga said.
Hajjat Zauja Ndifuna, the executive secretary and director of Mbogo Schools, endorsed the digital model as a practical solution for school administrators and parents alike.
With the rising cost of implementing the competence-based curriculum, schools and parents need reliable financial support. The Furaha and Cairo Bank solution provides a timely and practical bridge, she said.
The partnership is part of a wider strategy by both institutions to introduce impactful, purpose-led financial products to the Ugandan market.