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The Cost of ‘Better’ Education

Families Struggle to Keep Pace with Soaring School Fees

Mahlet MehdibyMahlet Mehdi
August 2, 2025
The Cost of ‘Better’ Education
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In Addis Ababa, the rising cost of private education is sending ripples of anxiety through households already strained by inflation and stagnant wages. What was once a manageable expense for many families has, in recent months, become a financial cliff.

For Mekdes Bekele, a mother of one, the latest tuition hike has turned her monthly budget into a tightrope walk. Her son, enrolled in KG3, now costs 2,500 birr a month—up from 1,700 last year. With a household income of just 7,000 birr, most of it from renting out a spare room, the new school bill has left her scrambling.

“I didn’t expect such a big increase,” she said, frustration creeping into her voice. “I can’t let my son miss school, but it’s getting harder to manage. And the school supplies still haven’t been bought. The pressure is just growing.”

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Her story is echoed across the capital, where parents—whether scraping by or relatively well-off—are making painful choices to keep their children enrolled. One father, who asked not to be named, said he had no choice but to pull his daughter out of her school after tuition surged from 3,200 to 4,400 birr a month. “I also have a younger child who hasn’t started school yet,” he explained. “With my salary stuck where it was and expenses rising everywhere, I had to start looking for cheaper alternatives.”

Even at the city’s top-tier private institutions—where annual fees can run into the millions of birr—parents have been pushing back. The frustration is not just about the numbers but about a growing perception that private education in Addis is spiraling beyond the reach of many.

Education officials insist they are not turning a blind eye. According to the Addis Ababa City Administration Education and Training Quality Control Authority, 1,227 private schools were granted permission to raise tuition for the upcoming (2018 E.C) academic year. While the regulation technically allowed increases of up to 65 percent, only a single school received that upper limit.

Izedin Musbah, general manager of the Authority, told the Ethiopian Reporter Newspaper that when the first wave of applications arrived, 90 percent of schools were seeking tuition increases well above the threshold—some by as much as 263 percent—citing inflation and operational pressures. Only a small minority — about ten percent — kept their proposed increases below 50 percent. But after extensive consultations involving education, finance, and trade officials, along with private school representatives, the administration introduced a more restrained, tier-based approach.

The Authority ultimately imposed a tiered ceiling on the hikes, taking into account school type and quality classifications.

While many institutions received approval to raise tuition by 40 to 50 percent, a smaller number were permitted increases of up to 55 or even 60 percent. But hundreds of schools that had raised their fees just a year prior were excluded from this round entirely and must wait until 2019  in the Ethiopian calendar to apply again.

Preschools were allowed to raise their fees by up to 45 percent. Primary and middle schools fell within a similar range, while high schools were granted a slightly higher cap of 55 percent — though one exception was made for a school that received approval for a 65 percent increase.

The authorities argue that this system is designed to strike a compromise between school sustainability and household affordability. But for many families, the nuance is lost in the numbers. The impact is immediate and visceral: fewer outings, tighter grocery budgets, and mounting stress over how to juggle education with daily survival.

A Market of Stark Contrasts

Nowhere is the disparity in Addis Ababa’s private education system more evident than in the range of tuition fees. At the high end, institutions like the International Community School (ICS Addis) charge between 1.6 million and nearly 5 million birr annually. Cambridge Academy Ethiopia’s fees fall between roughly 970,000 and 1.75 million birr per year. The German Embassy School charges between 1.13 and 1.45 million birr, while Flipper International School and Lycée Guebre-Mariam ask for 562,000 and around 400,000 birr respectively.

Despite these sharp contrasts in price points, a common thread binds families across the spectrum: growing difficulty keeping up with the rising cost of education. Whether paying hundreds of thousands or just a few thousand birr a month, parents describe the financial pressure as increasingly unsustainable. The affordability crisis, it seems, is neither exclusive to the wealthy nor the working class.

A Matter of Survival

School administrators argue that the tuition hikes are not simply a matter of profit—they’re essential for survival.

Abera Tasew, president of the Ethiopian Private Schools Association and owner of Magic Carpet School, insists that without increased tuition, many schools would not be able to meet basic operational standards.

“To operate effectively, schools must meet essential requirements—qualified staff, educational materials, safe facilities—and these things come at a cost,” he said. Most private schools, he noted, rent their buildings, with lease prices rising steadily. Others are saddled with large loan repayments on properties they’ve purchased. Salaries for teachers also need to be adjusted regularly to retain staff in an inflationary environment.

At his own school, tuition rose this year by 45 to 55 percent. “Because our base rate was already relatively low compared to other schools in our category, parents are still enrolling their children,” Abera said. “Unless they opt for government schools, there aren’t many lower-cost options.”

The city’s regulatory framework, designed to bring order to an unpredictable market, attempts to differentiate between schools based on quality. The regulation sorts private institutions into four tiers, with only those in the top category—Level Four—permitted to raise fees at the highest rates. This approach is intended to encourage improvements in educational standards while limiting the burden on families.

Still, pressure is mounting. Even families at the upper end of the income scale report having to reconsider how many children they can afford to enroll—or whether they can keep them in school at all. For those already stretched thin, the impact is immediate and destabilizing. Some children have been withdrawn, while others live in the shadow of uncertainty, their academic future tied to the next tuition cycle.

As the new school year begins under this adjusted regulatory model, Addis Ababa’s families face hard choices. For many, education is beginning to compete with rent, food, and medical care—an impossible equation in a city where wages have failed to keep pace with inflation.

Private schools remain a cornerstone of education in the capital, serving a significant share of the student population. But sustaining that role will require more than short-term fee caps. It demands honest, ongoing dialogue between parents, school owners, and policymakers—and a long-term strategy that balances economic realities with the right to quality education.

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Mahlet Mehdi

Mahlet Mehdi

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