How to simplify back-to-school planning

For many parents, the scramble to get children back to school catches them unawares or in a tight financial corner to manage the various education needs, such as paying school fees, purchasing books and stationery, and doing general shopping for boarders.

While many are likely to turn to mobile loans, they often find that the small ticket sizes and quick repayment periods solve only part of the problem and introduce new financial pressures. This creates a gap to offer more flexible solutions that support parents during the back-to-school period. Banks are responding to this gap, offering the right ticket sizes that could meet the needs of the average Kenyan home.

Financial institutions are creating low-cost credit card options for lending school fees to parents, expanding the number of options to bridge the back-to-school fervour.

The Buy-Now-Pay-Later (BNPL) is a new concept where companies offer flexible payment terms to purchase all manner of items from mobile phones, household appliances, electronics, IT gadgets, and even holidays, in partnership with retailers like Samsung, and Hotpoint.

The BNPL concept has been growing fast in Kenya. A previous report by had indicated it would grow by about 107.8 percent annually to reach Ksh62.6 billion ($521.8 million) in 2022.

It has continued to grow widely in Kenya on the back of the clean energy expansion and off-grid solar power start-ups in rural areas offering pay-as-you-go kits in a race to claim customers who lack reliable access to electricity.

Unlike mobile loans which are short-term facilities issued at high rates, the BNPL products are tailored to the product use and borrower conditions, giving banks the flexibility to expand their portfolios. They are also easily accessible, thus ensuring financial inclusion to all customers. So, why should you use the Buy Now Pay Later option for your back-to-school purchases?

Easily accessible to a wide range of customers

The Buy Now Pay Later credit card is available for all customers. Absa Bank Kenya ensures customers are provided with adequate information about the product. The bank, through its customer care lines, website and social media pages, supports queries made by customers, enabling them to access financial products.  

To apply for the card, a customer only needs to visit any Absa Bank Kenya branch and after their creditworthiness is assessed, they can access the product features. The setup and application process for Absa’s Buy Now Lipa Pole Pole card feature is instant and hassle-free.

Flexible and secure payment options

Absa Bank Kenya offers zero set-up fee and interest rates of up to 2.67 percent per month through the Absa Buy Now Lipa Pole Pole feature, allowing parents to use the card to meet their needs and make payments within flexible periods.

The innovative and user-friendly card allows parents to spread the cost of back-to-school purchases and school fee payments in a structured payback plan over a period of up to 12 months. This helps ease a customer’s financial burden when they are experiencing financial challenges. The card also ensures that the transactions made are secure and enables parents to supplement their finances during the back-to-school season.

Absa Bank's BNPL credit offering provides parents with the flexibility to choose a repayment plan that suits their financial situation. This ensures that educational expenses can be spread out over several months, preventing a sudden financial strain. The flexibility and convenience offered by BNPL allow parents to focus on the stories that truly matter – being present for your child's academic journey away from the pressing anxieties of everyday life.