On January 23, as Mang’u High School celebrated its 100th anniversary about 50 kilometres from Nairobi, three banking booths drew steady attention from students and parents. Co-operative Bank, Equity Bank, and KCB Group were offering prepaid cards pitched as a safer, modern way to manage pocket money. The cards, costing between KES 350 and KES 600 depending on the bank, allow parents to load money through channels like M-PESA or bank apps, while students can spend only what has been loaded. Lost cards can be blocked, balances monitored, and parents receive transaction alerts, making them a more controlled alternative to cash, especially for boarding school students expected to manage pocket money for weeks at a time.
While the cards themselves are simple, the strategy behind them is significant. Kenyan banks are turning schools into a new frontier for customer acquisition. With roughly 15 million students in the education system, schools offer concentrated groups of families ready to engage with financial products. The immediate revenue from issuance fees and small transaction margins is modest, but the longer-term goal is to build relationships that could lead to savings accounts, student loans, or even salary accounts in the future.
The timing is notable in a country where mobile money has long dominated daily transactions. Parents often send money instantly via M-PESA, and cash remains widely trusted and universally accepted. But students in many schools are not allowed to carry phones, creating a gap that prepaid cards can fill. They also work at card terminals and online, offering features mobile wallets cannot always support. The real competition, however, is habit. Parents and students accustomed to cash or mobile transfers may resist adopting a new system unless it proves easier, faster, and more reliable.
At Mang’u, the presence of three rival banks at a single school underscored how aggressively lenders are approaching this market. Banks are not waiting for children to grow into customers; they are engaging with them at the moment they begin to handle money independently. The cards also introduce students to formal banking practices early, teaching budgeting and controlled spending — a small but meaningful financial education.
Adoption will depend on friction. If top-ups are slow, notifications fail, or balances are inaccurate, parents may revert to cash. There are also cultural considerations: pocket money has traditionally been a private negotiation between parent and child, and tracking it through a card could feel restrictive. Yet for families and schools willing to embrace the system, prepaid cards offer convenience, security, and the ability to top up remotely without traveling to campus.
Schools, in effect, are becoming miniature marketplaces for banks. Large events like centenary celebrations provide an opportunity to reach many parents at once, and successful pilots could expand cards into a broader student financial ecosystem, covering school fees, transport, and even digital learning services. The experiment is not just about pocket money; it is a step in positioning banks for long-term relationships in an increasingly digital economy.
For now, the success of the prepaid cards will hinge on reliability, ease of use, and the willingness of parents and students to trade cash for control. If banks get it right, what starts as pocket money management could grow into a lifetime of financial engagement. If not, it may remain a niche experiment in Kenya’s evolving payments landscape.
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