Private school owners oppose fees regulation by government

Kampala, Uganda | THE INDEPENDENT | Owners of Private schools and institutions have once again called on the government to address the challenges they face in delivering education.

However, they remain firm in their opposition to any regulation on school fees.

Under the National Private Education Institutions Association (NAPEIA), private school owners have highlighted the increasingly difficult financial environment in which they operate, stressing the need for government intervention to make education more accessible and sustainable.

According to Hasadu Kirabira, NAPEIA chairperson, private schools play a crucial role in supporting the education sector, yet they face numerous challenges that complicate their efforts.

“If the government can remove the impediments our institutions face, this will significantly improve education,” Kirabira stated. “After all, education is a public good, whether provided by the government or private institutions.”

Kirabira was speaking during the first annual dialogue for private schools and institutions, where school owners engaged with the Ministry of Education and other relevant agencies at an event held at Greenhill Academy in Kibuli.

Through a joint paper, private school owners presented a comprehensive list of demands to the government, with a focus on alleviating the financial pressures caused by taxes. They argue that their businesses are being suffocated by the multiple taxes collected by both local and central governments. “We are constricted by taxes, including income tax, withholding tax, capital gains tax, property rates, ground rent, trading licenses, local service tax, import duty, rental tax, levies on school vans, signposts, and more,” the document reads in part.

The proprietors also called on the government to establish a special education fund that would allow education institutions to access financing at lower interest rates. Elaborating on the matter, Kirabira noted that many private schools are struggling under the weight of bank loans. He suggested that such a fund, potentially established at the Uganda Development Bank, could provide much-needed relief and help these institutions stay afloat.

The school owners also argued that the government should consider raising the income tax threshold to at least 600,000 shillings, ensuring that teachers earning between 200,000 and 600,000 are not taxed, as this amount is already minimal and many teachers struggle to meet their financial obligations. Currently, the individual tax threshold stands at 235,000 shillings.

Additionally, they proposed a review of the National Social Security Fund (NSSF) contributions, particularly during holiday periods when teachers are not actively working, to ease the financial burden on both educators and institutions.

Furthermore, the school owners addressed the issue of teacher compensation, urging the government to contribute to their payrolls, particularly to help fund the salaries of science teachers. Alternatively, they suggested that private institutions be allowed to share teachers already employed by the government to alleviate staffing challenges.

Despite their calls for government support, private school owners have made it clear that they want to retain the autonomy to set their school fees without government intervention. In their document, they devoted significant attention to this issue, outlining around ten reasons why they believe the government should not regulate school fees.  “We, the proprietors of private education institutions, oppose the introduction and implementation of this policy, particularly concerning private education institutions,” they noted. They argued that regulating school fees would defeat the purpose of privatization, limit innovation and creativity, and create unfair disparities, especially since other sectors like healthcare and banking are also regulated, among other reasons.

Over the past year, there has been a public outcry over the rising school fees in both private and government schools, with many calling on the Ministry of Education to take action and curb what they described as the “madness” of excessive charges imposed by schools.

In response, the ministry proposed regulations on fees, aiming to establish allowable charges. However, these regulations have remained in draft form for an extended period, as discussions on the matter have dragged on.

Speaking to our reporter, Maurice Kato, a teacher at a private school and a parent, criticized private school owners for what he described as their selfishness, a sentiment he believes was evident in their recent demands. He argued that they focus solely on issues that protect their profits while ignoring the well-being of teachers and the quality of education.   “They want to avoid anything that requires them to spend money. They cannot address the welfare of teachers and staff or the concerns about the quality of education,” Kato said.

He expressed concern that many school owners are in positions of power and influence, which could allow them to lobby for their interests while leaving parents, learners, and teachers to suffer.  Kato’s remarks about the influence of school owners resonated strongly, as it was observed during the event that several ministers, Members of Parliament, and local government officials were also private school operators. Along with a few businesspeople, NGOs, and faith-based institutions, they were among the key stakeholders in the room.

Dr. Kedrace Turyagyenda, the Permanent Secretary at the Ministry of Education, also challenged the private school owners. She emphasized that while they are seeking relief, they must also consistently adhere to the set regulations and ensure that they meet the required minimum standards.

Janet Kataha Museveni, the Minister of Education, did not hold back in addressing the concerns of private school owners, stating that the responsibility of resolving these issues cannot rest solely on the government through policy formulation and laws.   She emphasized that private school proprietors must confront the ethical dilemma of balancing the pursuit of profits with the obligation to provide quality education that is both accessible and affordable.

The minister pointed out that many private school owners prioritize financial gain over the quality of education and the welfare of their staff.

The minister further noted that although private proprietors continue to call for the government to resume the Public-Private Partnership arrangement in education service delivery, her ministry observed, particularly during the implementation of Universal Secondary Education that the funds allocated to schools often failed to remain within the institutions to fulfill their intended purpose.

She emphasized that this misuse of funds was one of the key reasons behind the abolition of the Public-Private Partnership arrangement in the implementation of Universal Secondary Education.

Private school owners entered the education sector in 1993 after the liberalization policy was implemented. Over the years, they have come to dominate the sector. For instance, they now control 100 percent of early childhood education and development centres, nearly 30 percent of primary schools, and 66 percent of secondary schools.

Records from the National Social Security Fund (NSSF) also show that these institutions are among the largest employers, contributing 30 percent of the total number of savers. However, their compliance with regulations remains questionable.

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