A digital school fee loan system is helping thousands of learners in Uganda stay in school by bridging persistent gaps in household income, with at least 31,000 students already supported through mobile-based financing solutions.
The intervention, driven by fintech firm Furaha Finserve Uganda Ltd in partnership with Cairo Bank Uganda and payments platform SchoolPay, is being implemented through a platform known as “EduBridge,” which allows parents to access school fees instantly via mobile phones using USSD or app-based services.
Through the system, funds are disbursed directly to school accounts within minutes, a feature developers say is meant to eliminate misuse and build trust between schools and parents. “We know school fees are one of the biggest household expenses,” said Denis Musinguzi, Chief Executive Officer of Furaha Finserve Uganda Ltd. “What we’ve built is a secure ecosystem where a parent can access funds 24/7 and pay fees directly to the school in less than five minutes.”
Since its rollout, the platform has reached about 5,000 schools—roughly 30 percent of its network—signaling fast uptake in a sector where delayed payments often disrupt learning. Education stakeholders say the intervention comes at a time when schools are under increasing financial pressure, worsened by low term-start payments and the rising cost of delivering the competence-based curriculum.
Hajjat Zauja Ndifuna Matovu, Executive Secretary of Mbogo Schools, said the curriculum shift has increased the cost burden on both schools and parents due to its emphasis on practical and skills-based learning.“This curriculum is skills-oriented and resource-intensive,” she said, noting that schools must invest more in materials and facilitation for learners.
George Mutekanga, Assistant Commissioner for Private Schools at the Ministry of Education and Sports, urged financial service providers to align their products with the realities of the new curriculum. “The competence-based curriculum is the future, but it comes at a cost,” he said.
“Financial solutions must respond directly to what is driving those costs.” Cairo Bank Uganda says the initiative forms part of a broader strategy to position education financing as a development tool. Acting Managing Director Sylvia Jagwe Owachi said the bank is offering multiple financing products targeting schools, suppliers, and teachers.
The bank is targeting up to one million learners, framing education finance as a key driver of Uganda’s Vision 2040 development agenda. However, data shared at the forum shows that only about 30 percent of school fees are paid at the beginning of term, leaving schools struggling with operational costs and sometimes sending learners home.
Education experts also warn that while the digital lending model is expanding access, its long-term success will depend on responsible lending, financial literacy among parents, and strong regulatory oversight under Uganda’s financial laws.Despite concerns, school administrators report positive impact. Moses Sizom, Director of Ebony High School, said flexible financing helped prevent closure of his institution.“One of my lowest moments was in 2025 when my school nearly collapsed,” he said. “When others couldn’t support us, Cairo Bank stepped in with flexibility. That support helped us recover, and our student numbers have since doubled.”-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
