Fanisi Capital, a Kenya-headquartered private equity group has paid Sh250 million for an undisclosed minority stake in St. Bhahita Schools, a private lower primary institution with four branches in the capital Nairobi, an indication of the attractiveness of education sector to investors.
In a statement released Tuesday in Nairobi, the private equity fund that invests in Kenya, Tanzania, Rwanda and Uganda said it has “completed a transaction to invest in St. Bakhita Schools for a minority shareholding”.
Fanisi Capital’s Managing Partner, Ayisi Makatiani, said the schools fit within the firm’s investment strategy which aims to invest in ambitious entrepreneurs who are providing high-quality education and building the country’s future leaders.
According to Fanisi Capital, St. Bakhita has over 1,300 students across three branches and aims to open two more schools over the next five years. However, on its website, the schools say it has four branches.
“Education is a core sector for Fanisi because it’s the bedrock of growth of any economy. Together with Felista Mutinda, the school’s founder, we are looking at building a network of schools across the region and we are excited about this prospect,” said Ayisi.
St Bakhita School opened its doors as a Kindergarten with 35 students in 2003. All its branches in Nairobi offer kindergarten and lower primary education, with plans to expand to upper primary.
The new investors are expected to drive the schools’ expansion, and most likely exit, as they did with Hillcrest Schools, a Kenyan international school brand which it bought in 2011 and exited in 2019.
“This investment by Fanisi Capital gives us a strong financial footing to enable the school drive this agenda”, Ms Mutinda said.
Ms Mutinda urged the private sector to emulate Fanisi Capital’s example and invest more in the education sector, terming it an investment that will provide the country with quality leadership that will steer the country to future economic prosperity.
The investment by Fanisi Capital in St. Bakhita School is Fanisi’s third investment within the education sector. Last year, it exited Hillcrest International Schools to GEMS Education, a school into which it had invested in 2011 (through its predecessor Fund, Fanisi Fund I). It also invested in Kitengela International Schools in 2018.