Private schools in Bugisu face mounting financial pressure from low enrolment, rising teacher salaries and government education policies, forcing proprietors to rethink investment, management and long-term sustainability strategies.
Private school proprietors in the Bugisu sub-region are facing growing financial pressure as the lingering effects of the COVID-19 pandemic combine with changing government education policies to reshape the economics of running schools.
For years, investing in a private school has been viewed as both a business opportunity and a contribution to educating future generations.
However, declining enrolment in some institutions, rising operational costs and competition from government schools are forcing proprietors to reconsider their investment and management strategies.
Sam Kuloba, an education consultant and former education commissioner, says private school owners must adapt to the changing education landscape if their institutions are to remain financially sustainable.
Figures from Mbale City’s education sector illustrate the challenge facing private investors. Although private institutions account for the overwhelming majority of schools, government-owned and aided schools enrol significantly more learners.
Of the 407 primary schools in the city, 347, representing about 85.3%, are private, while 59, or 14.5%, are government-owned or aided. The figures provided show government schools enrolling 75,453 learners, compared with 15,667 in private schools.
At secondary level, 24 of the 30 schools are private, accounting for 80% of the total. However, the six government-owned or aided schools enrol 23,503 learners, compared with 11,989 in private institutions.
The figures point to a disparity between the number of private schools and their share of total enrolment, raising questions about competition, capacity utilisation and the ability of proprietors to meet operating costs.
Educationist Gonzaga Rwaga attributed poor enrolment in some private schools to the financial strain COVID-19 placed on households.
He said some parents moved their children to more affordable institutions or government schools after their incomes were affected by the pandemic.
“Some parents opted for more affordable schools or transferred their children to government schools after their household finances were affected by the pandemic,” Rwaga said.
The resulting decline in enrolment has left some private institutions struggling to collect enough school fees to cover recurring expenses, including salaries, utilities, learning materials and facility maintenance.
Government efforts to expand access to education have added another layer of competition. Through investment in seed secondary schools, government has brought more learners closer to their homes, reducing the need for some students from surrounding districts to travel to Mbale City for secondary education.
Kuloba said the expansion of government schools has affected private institutions that previously relied on learners from neighbouring districts to sustain their enrolment.
Teacher remuneration is another challenge, particularly for private schools competing with government institutions for qualified staff.
Kuloba said rising salaries, especially for science teachers, have made it increasingly difficult for some private schools to retain personnel while keeping their wage bills within manageable limits.
“The salary portfolio of a rural private school may be ten million, but right now one science teacher is getting four million, so that salary which used to pay twenty people only pays two. So private schools may not have money to pay science teachers,” he said.
The example illustrates the pressure that higher salary expectations can place on institutions operating with limited fee income.
Schools that cannot match government remuneration risk losing qualified teachers, potentially affecting the quality of instruction and their ability to attract learners.
Changes in the curriculum have also introduced new demands on school budgets.
The competence-based curriculum requires schools to adopt teaching approaches that emphasise learners’ practical skills, application of knowledge and problem-solving abilities.
Implementing these approaches may require additional teaching materials, appropriate classroom arrangements and other learning resources.
For private schools with low enrolment or fees that do not adequately reflect operating costs, meeting these requirements can further squeeze already narrow profit margins.
Rwaga said changes in assessment and perceptions of academic performance have also influenced parents’ school choices.
“Some parents who previously favoured highly performing private schools now perceive that learners in government schools can attain comparable results under the new assessment system,” he said.
Despite these challenges, Kuloba argues that private schools can remain viable if proprietors adopt stronger financial and administrative systems rather than relying solely on increasing enrolment or raising fees.
He recommends financial literacy, realistic budgeting, transparent accounting and long-term planning to help school managers understand their costs and make informed investment decisions.
He also encourages proprietors to explore partnerships with financial institutions for asset financing and management support, provided the financing terms are appropriate for their institutions’ projected income.
For prospective investors, the changing education landscape highlights the need to treat a school as a professionally managed institution rather than simply a property investment or a source of quick returns.
Before investing in land, classrooms and other facilities, prospective proprietors need to assess the number of potential learners within their catchment areas, parents’ ability to pay fees, competition from existing schools and the educational needs their institutions can meet.
Ultimately, the sustainability of private schools in Bugisu will depend on their ability to balance financial discipline with quality education, competitive staffing and investment in appropriate learning resources.
As government expands access to education and household finances continue to influence school choices, proprietors who align their investments with local demand and realistic operating budgets are likely to be better positioned to navigate the changing landscape.