Kenyan startup Ed Partners is dedicated to expanding access to education by partnering with private schools and offering innovative financial and non-financial solutions.
Founded in 2018 by Lydia Koros and David FitzHerbert, and currently led by CEO Amos Mwangi, Ed Partners provides financing options for crucial elements of the education system, including infrastructure, technology, and transport. Its impact has already reached over 100,000 students across 350 schools.
“What sets Ed Partners apart is our ability to bridge the gap between microfinance and commercial finance,” Mwangi told Disrupt Africa.
“We offer flexible capital at competitive rates, with an average loan ticket size of US$15,000. Our repayment schedules are dynamic and tailored to the typical business model of Kenyan schools. Importantly, we understand the unique scheduling challenges faced by schools, including breaks and holidays. Therefore, our repayment plans accommodate these periods, allowing schools to pause loan repayments during such times. This flexibility enables schools to manage their finances effectively and align repayments with their operational timelines.”
In addition to its financial services, Ed Partners runs the Beyond Loans Programme, through which it provides training on school and finance management, as well as curriculum development support.
“We believe in equipping schools with the necessary tools and skills to operate efficiently, ensuring their long-term success,” said Mwangi.
Ed Partners formed after identifying a significant market gap in Kenya, specifically in the affordable education sector, where there was a lack of financial solutions tailored to its unique needs.
“Traditional banking institutions and microfinance options were unable to fully meet the requirements of this sector,” said Mwangi.
The startup raised US$1.9 million in funding back in 2021, and has received a positive reception in the market, consistently achieving year-on-year growth.
“For example, we experienced a growth rate of 33 per cent from the financial year 2021/22 to 2022/23. Moving forward, our goal is to triple this growth rate in the next financial year,” Mwangi said.
Ed Partners is currently operating in the education market in Kenya, covering more than 20 of the country’s 42 counties.
“Our focus is on providing financial solutions and support to educational institutions within the country and the region. We have initiated discussions to review the opportunities for education finance in the region,” Mwangi said.
Ed Partners’ main revenue source is derived from interest earned on the loan facilities provided to schools.
“We are pleased to report that our financial performance aligns with our business plan, and we are on track to reach the break-even point in the upcoming financial year,” said Mwangi.
