In the world of boarding schools, the term “Kawu” resonates deeply with students and parents alike. It refers to those challenging periods when students run out of pocket money and are left with little more than the school kitchen’s offerings—often a monotonous diet of porridge, posho, and beans.
However, a group of innovative young Ugandans is determined to change this narrative with their groundbreaking digital solution: Kawu.
Kawu is not just a name; it’s a lifeline for students navigating the complexities of school finances. Traditionally, pocket money—often referred to as “School Grab”—has been managed either directly by students or entrusted to school staff, such as bursars and matrons.
This system, however, is fraught with challenges. Money can easily get misplaced or mismanaged, leaving students vulnerable to theft or financial misadventures.
In response to these issues, Kawu was developed to streamline the process of managing pocket money. The platform allows parents to send funds directly to their children through an app or USSD, which students can access via a smart card.
This innovation not only enhances security but also empowers students to manage their finances more effectively.
Steven Kakooza, a co-founder and director at Kawu, explained the motivation behind this initiative: “We basically issue out credit and debit cards to students. In most African schools, students are not around to have mobile phones. So, when they are in schools, the only way they can access money is through cash. What we do is take away all that process of sending money to students through teachers who then give it to them in cash.”
Kawu aims to introduce students to digital financial services early in their educational journey. Kakooza emphasizes the importance of this approach: “When you look at the education system in Africa, you find that students spend on average nine months every year in school.
On average, someone spends 15 years in school. These are years the youth spend without accessing digital financial services yet they need them. We created Kawu to address this issue.”
Since its launch in 2022, Kawu has gained significant traction, currently serving over 62,000 active customers across 70 schools in Uganda. The platform collaborates with Interswitch, a licensed financial technology company in Uganda, to ensure smooth operations.
Kawu’s design benefits not just students but also parents and school staff. Parents can easily send money and set spending limits, while school staff act as transaction agents, earning a commission for their services.
This model transforms the traditional pocket money system into a more efficient and secure process.
Kakooza noted the overwhelming positive reception Kawu has received: “We have received a lot of positive reception everywhere we have gone. We are actually overwhelmed by the requests from different schools that want to enroll onto Kawu. Over 90 percent of the schools we visit wish to have their students on Kawu.”
Kawu is part of the 40 Days 40 FinTechs initiative, which showcases innovations that promote financial inclusion. Kakooza’s vision for Kawu extends beyond just managing pocket money; it aims to cultivate financial literacy among students, ensuring they are well-equipped to handle their finances as they transition into adulthood.
“People always admire the flowers but ignore the roots yet without roots, the flowers couldn’t grow. For our case, we are enhancing financial inclusion and teaching financial literacy right from schools so that by the time these students leave school, they are equipped with sufficient knowledge to do better financially,” Kakooza stated.
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