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Unlocking School Cashflow in Africa: How PentaPay Is Transforming Education Payments

  • Writer: The AI Review
    The AI Review
  • Jul 13
  • 3 min read

Updated: Jul 20

“It’s not that parents don’t want to pay school fees. They simply can’t pay them all at once.”


— School Administrator, Nakuru County


A confident woman stands in a warmly lit room, smiling and holding a stack of books, embodying knowledge and empowerment.
A confident woman stands in a warmly lit room, smiling and holding a stack of books, embodying knowledge and empowerment.

The Problem: Broken Payment Systems Are Holding Schools Back

Across Kenya and most African countries, school fee payment models are outdated and restrictive. Most schools require large, lump-sum payments at the beginning of a term, often ranging from KES 5,000 to 50,000+, depending on the school level.


But the reality?

  • 60% of Kenyan households rely on informal incomes or irregular cash flows (CBK Household Survey, 2021).

  • Over 70% of students in public secondary schools are enrolled under partial bursary or parental cost-sharing schemes.

  • In sub-Saharan Africa, school fee defaults contribute to 30–45% of term-time dropouts (UNESCO, 2022).

This mismatch between the fee structure and household liquidity cripples:

  • Cash flow for schools, limiting them from paying teachers, buying books, or maintaining infrastructure.

  • Access to education for students, especially in rural and peri-urban regions.

  • Trust and transparency between schools and parents.


Smart Payment Infrastructure for Schools

The PentaPay platform, as a solution, automates and breaks down large school invoices into affordable micro-payments over time, while guaranteeing the school receives its funds upfront or in structured intervals.


How It Works:

  1. School uploads invoices via the PentaPay platform (or integrated school ERP).

  2. PentaPay generates a smart invoice recommendation tailored to each parent (e.g., weekly, biweekly).

  3. Parents link their card or bank account, without the need to install apps.

  4. Schools track payments in real-time, send reminders, and unlock early access to funds using the amortized model, which is automated by PentaRail Infrastructure.


    Students enjoy a moment of camaraderie and fun outside their school, capturing the spirit of youth and friendship.
    Students enjoy a moment of camaraderie and fun outside their school, capturing the spirit of youth and friendship.

Impact & Inclusivity: Advancing the UN SDGs with PentaPay

PentaPay is more than just a payment platform — it’s an inclusive financial tool driving measurable impact toward key United Nations Sustainable Development Goals (SDGs):

SDG 4: Quality Education

  • Enables continuous access to learning by eliminating fee-related interruptions

  • Reduces dropouts caused by financial bottlenecks

  • Allows schools to invest in books, labs, and teachers through a predictable cash flow


SDG 10: Reduced Inequalities

  • Democratizes school payments by serving low-income and low-income households

  • Works with both urban and rural schools, ensuring no child is left behind due to payment rigidity

  • Inclusive payment options for single parents, guardians, and seasonal workers


SDG 8: Decent Work & Economic Growth

  • Empowers schools to pay staff on time and hire more educators

  • Opens up financial literacy for families through structured digital finance tools


Why Schools Choose PentaPay?

  • Cashflow Assurance: Schools no longer need to wait weeks/months for partial payments.

  • No Loan or Credit Risk: PentaPay structures payments but doesn’t require lending.

  • Faster Budgeting: Schools can forecast staffing, procurement, and operations with precision.


    Two students in school uniforms are studying together outdoors, engaged in a discussion while pointing at a book.
    Two students in school uniforms are studying together outdoors, engaged in a discussion while pointing at a book.

Why Parents Love It

  • Flexible Payment Options: Match payments with salary, biashara income, or mobile money.

  • Automatic Reminders: Never miss a due date or get turned away at the gate.

  • No App Required: Works via WhatsApp, SMS, or secure web links.


Pan-African Potential

Across Africa, the private education sector is booming, but fee collection remains a bottleneck:

  • Over 450,000 private schools serve 60M+ learners continent-wide.

  • In Nigeria, Ghana, and Kenya alone, the school fee market exceeds $15 billion annually.

  • Yet more than 30% of school revenue is either delayed or never collected (World Bank, 2023).

  • PentaPay has the infrastructure to digitally onboard 10,000+ schools across Africa over the next 3 years.


Looking Ahead

Imagine a future where:

  • No child is sent home for fees.

  • No school misses payroll.

  • No parent fears opening a school invoice.

That’s what PentaPay is building: a smarter, more inclusive future for African education.


Whether you're a parent, school administrator, or impact investor, the time to transform education finance is now. Contact partnerships@pentapay.africa to find out how your school can be an early user.


Appendix: Sources & Links:


Education Data & Market Size

  1. Kenya Household Survey (2021) – Central Bank of Kenya https://www.centralbank.go.ke/uploads/surveys/1396821579_Household%20Survey%202021.pdf

  2. UNESCO Education Statistics – School dropout rates in sub-Saharan Africa http://uis.unesco.org/en/topic/education-africa

  3. World Bank – Private Education in Africa: Growth & Gaps https://documents.worldbank.org/en/publication/documents-reports/documentdetail/700861624178876224

  4. Africa Learning Barometer (Brookings Institution) – School participation trendshttps://www.brookings.edu/blog/africa-in-focus/2020/02/06/the-africa-learning-barometer

  5. TAM Estimates for School Payments in East Africa – MasterCard Foundation, Kenya EdTech Hubhttps://mastercardfdn.org/research/kenya-edtech-landscape-report/


UN Sustainable Development Goals (SDGs)

  1. SDG 4 – Quality Education https://sdgs.un.org/goals/goal4

  2. SDG 10 – Reduced Inequalities https://sdgs.un.org/goals/goal10

  3. SDG 8 – Decent Work and Economic Growth https://sdgs.un.org/goals/goal8


Financial Inclusion & Payment Innovation

Relevant Policy Documents

  1. Ministry of Education, Kenya – Basic Education Statistical Booklet https://education.go.ke/images/BE_STATISTICAL_BOOKLET_2021.pdf

  2. African Union – Continental Education Strategy for Africa 2016–2025 (CESA) https://edu-au.org/cesa

 
 
 

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