Stanbic bank has earmarked Shs 60 billion in school fees loan offers to help financially stressed parents return their children to school.
In his New Year address last week, President Museveni authorised schools to re-open next week on January 10. Now in response, Stanbic bank says it’s moving to assist the financially-indebted school owners and the education sector in general by coming up with booster plans for the schools.
The bank will write off accumulated interest on loans owed by indebted private schools, officials announced during a press conference on Wednesday in Kampala.
Under the discounted booster finance, schools are able to borrow up to Shs 500 million in collateral-free (unsecured) loans to prepare their institutions for reopening. Parents can also access up to Shs 250 million in unsecured loans processed digitally and dispersed within five minutes at zero processing fee.
Furthermore, the bank revealed that its decision to waive all 2021 unpaid accumulated interest on loans to privately owned schools is a proactive initiative based on the understanding that schools have not been earning and that they need to be supported to regain their ability to settle their liabilities.
Speaking at the press conference, the bank’s chief executive officer Anne Juuko said the "bold decision by management even in the face of uncertainty, speaks to our commitment to walk the talk of our business purpose, which is that we drive Uganda’s growth, as such, we have to exercise our corporate responsibility to the country’s education sector."
Dr Kendrace Turyagenda, the director of education standards in the ministry of Education and Sports lauded Stanbic's corporate leadership and urged other players in the financial sector to emulate them. She noted that the successful reopening of schools will require all stakeholders to play their part.
Uganda’s education sector has more than 28,000 schools, of which 80% are privately-owned.