Choosing an international curriculum (British Curriculum/IGCSE, IB, or American Curriculum) in Kenya offers your child a massive global advantage.
However, it requires an equally serious, intentional long-term financial roadmap.
Unlike the Kenya national curriculum, the Competency Based Education (CBE), elite international schools feature fee schedules that scale sharply as children enter candidate classes.
Annual day tuition ranges from KES 1,000,000 to KES 3,000,000 as you shall see as I dive deep into the fees structure of some elite international schools.
Some of the elite international schools in Kenya include Brookehouse Schools, International School of Kenya (ISK), Peponi School, The Banda School, Kenton College Preparatory School, Hillcrest International Schools, Rosslyn Academy, St. Andrew’s School, Turi, Aga Khan Academy, Mombasa, Nairobi Academy, among others.
In this guide, we shall go through the best education insurance for International Schools in Kenya.
I intend to help you, premium-tier parents, to design a strong insurance based education plan for the future school fees and related costs for your child based on these education insurance policies.
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Structuring an Insurance Education Savings Plan for International School (Hillcrest or Brookhouse Fees)
International schools segment their curriculum in different ways. However there is an observable pattern that we can use to generalise levels in international schools curriculum.
We shall use the IGCSE/British curriculum system as our general guide.
The British or IGCSE curriculum features the following formal levels or stages: Foundation Stage, Primary Level, Lower Secondary, O-level, A-level, and Tertiary/University Level.
There are other informal levels at the beginning or in between the official levels such as the Playgroup and Nursery levels. They vary from school to school.
The Foundation Stage takes 2 years, Foundation Stage 1 (Early Years) and Foundation Stage 2 (Reception). It starts when the child is approximately 3 years old.
The Primary Level takes 6 years to complete and starts when the child is around 5 years old.
When the child is around 11 years, they start Lower Secondary and this level comes to an end when they are 13 years old, after 3 years of rigorous secondary education.
When the kid joins O-level at 14 years, they spend 2 years here before joining A-level at age 16.
A-level prepares the child for 2 good years before finally joining the Tertiary level at age 18.
They complete the tertiary level at age 20 or 21 depending on where they attended university.
All that education journey means that your child will take not less than 18 years in school under the IGCSE/British curriculum.
To design a well structured international school insurance-based education plan, we shall build a table placing Brookehouse Schools and Hillcrest International Schools fees structure side by side. The current school fees for international schools in Kenya range between KES 1,000,000 to KES 3,000,000 on average.
We have chosen Hillcrest International Schools because their fees are moderate. On the other hand, Brookehouse Schools’ fees are a little bit higher and we shall use them as our plan ceiling. We want to build a practical education fund.
For university fees estimation, we shall use the average United Kingdom university tuition fee for undergraduate international students. It ranges between £15,000 and £25,000 annually. We shall take the maximum £25,000 (approximately KES 4,300,000 at the current rate of 172). It takes around 3 years on average to complete undergraduate studies in the UK.
The average annual US university tuition fee is a little bit higher than in the UK for the 4-year undergraduate studies for international students.
Table 1: A life Insurance Education Savings Plan For International Schools In Kenya.
| Year | Level & Age | Grade | Hillcrest International Tuition(KES) | Brookhouse Schools Tuition(KES) | Payouts/Bonuses | MonthlyPremium |
|---|---|---|---|---|---|---|
| Age 1-2 | Playground/NurseryAge (1-2 Years) | Unofficial Levels | 737,800 | 435,000 | – | Investment-Linked Insurance Account (Imarika Investment Plan) |
| *Year 1 | Foundation StageAge (3 Years) | FS1 (Nursery) | 844,200/359,800 | 1,020,000 | ||
| *Year 2 | Foundation StageAge (4 Years) | FS2 (Reception) | 398,700 | 1,095,000 | ||
| *Year 3 | Primary SchoolAge (5-10 Years) | Year 1 | 463,500 | 1,320,000 | ||
| *Year 4 | Year 2 | 667,200 | 2,205,000 | |||
| *Year 5 | Year 3 | 843,400 | 2,250,000 | |||
| *Year 6 | Year 4 | 2,295,000 | ||||
| *Year 7 | Year 5 | 2,325,000 | ||||
| *Year 8 | Year 6 | 867,500 | 2,475,000 | |||
| *Year 9 | Lower SecondaryAge (11-13 Years) | Year 7 | 905,600 | 2,520,000 | 4,000,000 | 12-Year Boresha Elimu (KES 73,263) |
| *Year 10 | Year 8 | 4,000,000 | ||||
| *Year 11 | Year 9 | 933,000 | 2,760,000 | 4,000,000 | ||
| *Year 12 | O-level StageAge (14-15 Years) | Year 10 | 1,013,400 | 2,820,000 | 4,000,000 | 16-Year Boresha Elimu (KES 74,405) |
| *Year 13 | Year 11 | 1,520,100 | 2,820,000 | 4,000,000 | ||
| *Year 14 | A-levelsAge (16-17 Years) | Year 12 | 1,626,450 | 2,880,000 | 4,000,000 | |
| *Year 15 | Year 13 | 1,626,450 | 2,880,000 | 4,000,000 | ||
| *Year 16 | University/TertiaryAge (18-20/21Years) | Year 1 | *4,300,000 | 4,300,000 | 6,000,000 | 19-Year Boresha Elimu (KES 111,458) |
| *Year 17 | Year 2 | *4,300,000 | 4,300,000 | 6,000,000 | ||
| *Year 18 | Year 3 | *4,300,000 | 4,300,000 | 6,000,000 | ||
| *Year 19 | Year 4* | 4,300,000 | 4,300,000 | 6,000,000 | ||
| Total | 52,000,000 | KES 259,126 |
Note:
- We have only considered the annual tuition fee for each school. There are other education related costs charged at these schools other than the tuition. They include school transport, lunch, boarding fee, among others. These extra costs make the total school fees balloon to astronomical levels. We shall factor them in our education plan.
- Inflation is yet another factor we must consider. Before your child reaches the levels you are saving for, economic conditions will have changed quite a lot. Technology, curriculum change,and boarding fee are other factors we must consider.
- Insurance based education savings plans start from 5 to 6 years. This means that if your child is 0 years, you can only start saving for primary level Year 1. It again means that an education insurance policy is a long-term savings plan, starting from 5 years. Another example is, if your child is at primary level Year 1, an education policy can only start paying from Year 6. For early years where an education insurance policy plan does not fit, an investment-linked insurance policy will work.
Our education plan above is designed with all that in mind. For all these reasons, we shall craft just 3 education policies to cover International curriculum Lower Secondary, O-level, A-level, and Tertiary Level.
For foundation stage and Primary Level, we shall use an investment-linked life insurance or pay out of pocket (I don’t not recommend this though)
Best Education Insurance Policies For International Schools
There are certain education policies specifically designed for international school curriculum (IGCSE/British/IB curriculum).
The best three education insurance in Kenya are Boresha Elimu, Msingi Poa, and Akiba. We shall use the three to plan for future school fees and related education costs for an international school.
Boresha Elimu Education Plan
Boresha Elimu Education Plan is an education insurance policy designed to pay 3 staggered bonuses in the last 3 years of the policy period.
In the last 2 years of the policy period, you do not pay the regular contributions. You enjoy a premium holiday as the staggered bonuses are being paid.
Besides the cash benefit you receive at the end of the savings period, the other benefit is the life protection.
The future education of your child is guaranteed as you shall be covered against permanent disability due to illness and accident and death.
If the policyholder dies or becomes permanently disabled, there shall be a premium waiver from the time these unfortunate events occur, and the maturity benefits will be paid when due.
Boresha Elimu is designed for IGCSE and CBE levels that take 3 years i.e Lower Secondary.
Msingi Poa Education Plan
Msingi Poa is designed on the same principle.
However, this policy pays 4 bonuses in the last 4 years of the policy. You will enjoy a premium holiday of 3 years as the staggered bonuses are being paid.
Just like Boresha Elimu, it has life protection against permanent disability and death.
Msingi Poa is designed for IGCSE and CBE levels that take 4 years to complete (O-level and A-level combined).
Akiba Savings Plan
The Akiba savings plan is designed a little differently. It offers a single lump sum amount at the beginning of the level(s) you are targeting, giving you the freedom of distributing the payout/benefit to different years in a way that suits.
It does not come with premium holidays like Boresha Elimu and Msingi Poa. You make your contributions continuously till the end of the policy. It is a marathon with great savings returns.
Boresha has a maximum savings period of 18 years while Msingi Poa has a maximum savings period of 22 years.
Akiba savings structure allows a maximum savings period of 12 years.
Using Akiba policy, you can just decide to take the bull by its horns, and plan to be contributing a huge regular premium and upon maturity you place the single lump sum in an investment vehicle.
For security and better returns, this investment vehicle must be the investment-linked life insurance.
From the invested amount, you will be drawing some money for school fees and related costs each year.
Savings Period and Payouts Structure
For the plan above in table 1, we shall make some assumptions.
- The child is Zero Years.
- The parent is 35 years old (principal member).
- You shall take your Kid to Hillcrest International Schools, Brookhouse Schools, or a different school with similar fees structure.
- For early levels including primary level, we shall use an investment-linked investment plan
- This plan is for demonstration purposes only. Your kid can be at any level and you can take them to an international school of your choice regardless of the fees charged.
Option 1: Boresha Elimu and Msingi Poa Combined (Table 1 Above)
We shall have:
- Investment-linked savings plan or out of pocket payment (Foundation Stage and Primary Level)
In this option, raising school for your child is best handled by putting some lump sum amount in an investment account. In this case, an investment-linked life insurance account.
Some investment-linked accounts guarantee a minimum return value even in economic instability ensuring you can build your education fund with confidence.
The performance of the fund depends on market conditions, but the returns are better than in a money market fund.
- A 12 year Boresha Elimu Education Plan (3 Payouts) for Lower Secondary
We shall place a 12-year Boresha Elimu education policy to cover the school fees and related education costs for Lower Secondary. Technically, you shall just contribute for 10 years, and the last 3 years of the policy, you will receive benefits to cover the 3 years of Lower Secondary under international/IGCSE/British Curriculum system.
To yield KES 4,000,000 each year, for 3 years (a total of KES 12,000,000), you shall make a monthly premium of KES 73,263 for 10 years. Note that you can choose to pay this amount monthly, quarterly, semi-annually, or yearly.
In the last 2 years of the policy, you will enjoy a premium holiday as you receive the bonuses.
- A 16- year Msingia Education Plan (4 Payouts) for the 4 years of O-level and A-level
We shall place another education policy, Msingi Poa, to pay 4 bonuses, each KES 4,000,000, adding up to a total of KES 16,000,000 for the 4 years of O-level and A-level combined.
Each month you shall be remitting KES 74,405 for a period of 13 years. The last 3 years of the policy, you will enjoy a premium holiday as you get the yearly bonuses.
You can choose to pay the premium contributions monthly, quarterly, semi-annually, or yearly.
- A 19-year Msingi Poa Education Plan for a 4-year undergraduate degree
This is our last policy. The policy covers college or university education.
We shall set the policy to yield 4 bonuses each paying KES 6,000,000 adding up to a total of KES 24,000,000.
This way, you can send your child for an undergraduate degree almost anywhere in the world. For more expensive universities such as Princeton, we can increase this fund
If you choose monthly contributions, every month you will be remitting KES 111,458 for 16 years.
You can adopt all the 3 policies or you can pick the levels that matter most to you. If you adopt all the 3 policies you shall have a massive education fund of KES 52,000,000
Option 2: Akiba Savings Plan
We have established that you need a total of KES 52,000,000 education fund to take care of international schools education costs.
Now, instead of setting up 3 policies, you can decide to go all in at once and pay a single regular premium contribution for just 10 years.
You will receive a single lump sum of KES 52,000,000 and you will use it to clear school fees.
My advice would be, when this money matures you transfer it to an Investment-linked account so that it can grow as you pay the yearly school fees.
The monthly contributions you will be making to receive KES 52,000,000 shall be KES 318,515.
This plan has no premium holiday but has a life protection against death. That means your education fund is locked whether you are there or not.
Whichever plan you adopt, your child can join any international school of your choice in Kenya comfortably. An education fund of KES 52,000,000 is adequate to cover even the most expensive international schools such as Brookehouse Schools, Peponi School, Greensteds International School, International School of Kenya (ISK), and German School Nairobi.
The above plan can be tailored to align with your financial needs. We can increase or reduce the amounts. The plan is for demonstration purposes only.
Choosing the Right Vehicle: Traditional Education Policies or Investment-Linked Plans
Msingi Poa and Boresha Elimu are some of the traditional education policies.
Traditional education policies guarantee returns featuring structured payout intervals. That is why they are so suitable for planning future school fees and related education costs.
When it comes to education savings,you must remove uncertainty. You need a plan that is certain, that if you save y amount of money for z years, you will get x amount of money. This is exactly what traditional education policies do. Traditional education policies have a built-in safety, such that even if the economy fluctuates, your basic sum assured remains secure.
Again, they incorporate built-in life protection. If the policyholder dies or becomes permanently disabled, they will receive the maturity benefit when due, and the policy premiums are waived for the remaining saving period.
Policyholders can also add more life protection by adding riders (optional life protection benefits) at a fraction of their premium.
Unit-linked or investment-linked life insurance policies also feature life protection with a possibility of adding riders.
However, the performance of the fund depends on the market conditions and the performance of the assets in which funds are invested.
Due to their volatile nature, they are less preferable for education planning. They introduce uncertainty which education policies are supposed to eliminate.
Currency Dilemma: KES or USD Denominated Planning
Can you buy retail dollar-denominated education insurance policies directly in Kenya?
A quick answer is no. Local retail education policies are underwritten in Kenya Shillings to easily capitalize on the statutory 15% life insurance tax relief under Kenyan revenue laws.
However, companies like Britam offer USD Money Market Fund and USD Fixed income.
You can combine a USD investment and traditional education policies to benefit from both worlds.
Key Parameters to Evaluate Before Signing the Policy
Before enrolling in an education policy, you must understand it. You must understand certain terms and clauses.
- Surrender Value. You cannot bolt out until the 2nd or 3rd year of the policy. If you opt out before maturity, you will be penalized unless the policy is in advanced years.
- Paid-up Option: Instead of being penalized for withdrawing your savings early before maturity, you can decide to let the money stay with the insurer and get lower payouts when the policy matures.
- Policy Loan: After the 3rd year of your saving period, you take a policy loan. The collateral is your policy savings.
- Flexibility of Premiums: You can choose to remit the regular premium contributions monthly, quarterly, semi-annually, or yearly.
Starting education insurance policies early is the secret. You will feel less financial pressure due to the long savings period available to you
Time is the ultimate leverage when compounding wealth for premium education.
Would you like a similar education savings plan? Use the form above to request a quote. Fill in the details and I shall get back to you in no time.
Thank you!
