Best Savings Plans for Your Child’s Education

Your baby may still be learning to crawl, but in the blink of an eye, you’ll be planning for preschool, primary school and even university. Education costs continue to rise, and starting early is one of the best financial gifts you can give your child.

Whether you’re saving for the next school term or thinking long-term, this guide will walk you through the best child education savings plans available in Kenya, and how to choose the one that fits your family’s goals.

Best Savings Plans for Your Child’s Education

1. Open a Dedicated Child Savings Account

Perfect For: Short- to medium-term school expenses

Most major banks in Kenya offer child-focused savings accounts with features like:

Zero or low monthly charges
Competitive interest rates
Withdrawal restrictions to discourage impulse spending

Examples include:

M-Chama Junior Account (Equity Bank)
Cub Account (NCBA)
Chama Savings for Education (Co-operative Bank)

These accounts help you build discipline and track progress toward upcoming school fees or supplies.

2. Consider an Education Policy Plan

Perfect For: Long-term savings and insurance combined

Education policy plans are offered by insurance companies and provide structured savings over a set number of years. At maturity, you receive lump sum payouts to cover tuition and other costs. Some also include life insurance, ensuring your child’s future is secure in case of unexpected events.

Popular providers in Kenya include:

Britam Elimu Bora Plan
Jubilee School Fees Plan
ICEA Lion Educare

Always read the terms and ask about payout schedules, penalties for early withdrawal, and what happens if you miss payments.

3. Set Up a Money Market Fund (MMF)

Perfect For: Earning higher interest with flexible access

Money Market Funds are investment accounts that offer better returns than traditional savings accounts while still being relatively low-risk. You can start with as little as KES 500 and make monthly top-ups.

They’re ideal for medium- to long-term planning (think school fees 3–5 years away), and they’re accessible when needed.

Top MMFs in Kenya include:

CIC Money Market Fund
Sanlam MMF
Madison Asset MMF
Cytonn MMF

Helpful read: How to Prepare for Your Baby’s Arrival: A Step-by-Step Guide

4. Automate Your Contributions

Perfect For: Building a consistent habit without thinking twice

Whether you’re using a bank account, MMF, or insurance plan, automating your contributions ensures consistency. Set up standing orders or mobile money transfers tied to your salary. Even small amounts—KES 500 to KES 1,000 monthly add up over time.

The earlier you start, the less you need to save monthly.

5. Teach Your Child the Value of Saving Early

Perfect For: Building healthy money habits from the start

As your child grows, involve them in the savings journey. Show them their account, explain why you’re saving, and let them add birthday money or small contributions. It builds financial literacy and a sense of responsibility.

Bonus Tip: Review Your Plan Annually

As your child grows and your income changes, so should your strategy. Set a yearly reminder to review your savings plan and make any necessary adjustments especially if school fees increase or your family expands.

Final Thoughts

Saving for your child’s education doesn’t have to be overwhelming. With the right plan, a little consistency, and a long-term mindset, you can give your child the head start they deserve without financial stress down the line.

Looking for parenting resources and school-ready essentials?
Visit Kiddie Kloset to explore more ways to prepare your child for every stage of life.

Best Savings Plans for Your Child’s Education