I Built a Ksh1.5 Million School Fees Fund for My Daughter

When Juliet was born, I was not in a good place with her father and did not see a future for us as a couple. I knew I had to think about her future independently, and I always thought of her as my project.

So, from the beginning, I decided to set aside money specifically for her. I am an accountant by profession and, at the time, I was earning a net salary of Ksh85,000.

I knew that if I relied on whatever money was left at the end of every month, I probably would not be consistent. So I automated it. I set up a standing order that deducted Ksh5,000 every month from my salary and directed it towards an investment for Juliet’s high school and college.

I considered taking an education policy, but I did not want one. Instead, I settled for a Money Market Fund.

When I started investing, the MMF I chose had a net return of 9.5%. I kept making my contributions for five years, and by then, my investment had grown to Ksh390,000.

Also Read: We Save Ksh240K for Our Kids’ Fees a Year in Advance; How We Do It

From an MMF to Bonds

Once I had built up the Ksh390,000, I started exploring other low-risk and stable long-term investments to diversify the fund. That is how I ended up investing in bonds.

I took Ksh300,000 from my MMF and invested it in a 15-year tax-free infrastructure bond that offered a 14% annual return. This meant the investment would generate Ksh42,000 every year.

Instead of spending the interest, I decided to reinvest it into the MMF. I also continued making my monthly contributions. So, every year, the Ksh42,000 from the bond would go back into the fund on top of the money I was already putting in.

I wanted to create a cycle where both my contributions and the returns from my investments continued working towards the same goal.

Also Read: Full List of All Extra-County Schools (C2) in Kenya

By Age Nine, the MMF Had Ksh582,000

By the time Juliet turned nine, the MMF had accumulated to Ksh582,000. The bond was also still generating its annual return, and I had become more confident in the approach I was taking.

Around this time, the same bond I had initially invested in reopened. I decided to put another Ksh500,000 into it, bringing my total bond investment to Ksh800,000.

At 14%, the Ksh800,000 investment was now generating Ksh112,000 every year. I continued reinvesting this money into the MMF instead of spending it.

At this point, the education fund had two investments working together: the bond was generating income while the MMF continued to grow through my contributions and the reinvested bond returns.

Also Read: How I Pay Ksh45K School Fees for My Kids Without Digging into My Pocket

By Form One, I Had Ksh1.54 Million

When Juliet turned 13, it was time for her to join Form One. By then, the MMF had grown to Ksh740,000, while my bond investment stood at Ksh800,000 and was still generating returns.

Combined, I had approximately Ksh1.54 million to cater to her education.

For me, this was the payoff of starting early. What began as a Ksh5,000 monthly standing order had grown into a sizeable education fund over 13 years.

More importantly, I had a buffer I could dip into when school fees or other education expenses came up. I did not have to wait for schools to reopen before starting to figure out where the money would come from, or panic over last-minute requirements.

I had already planned for it.

Looking back, I realise that building the fund was less about finding one perfect investment and more about giving the money enough time to grow, staying consistent and resisting the temptation to spend the returns.