Kenya: Learn Capital-02

Date Filed
19 Jun 2023
Status
Open
Phase
Compliance
Country
Kenya

Case Tracker

Eligibility
June 19, 2023-October 13, 2023
Eligibility
Assessment
October 16, 2023-May 29, 2024
Assessment
Dispute Resolution
Compliance
Appraisal
Investigation
Monitoring
Status as of April 14, 2024
CURRENT Status
Monitoring (COMPLIANCE)
Status as of April 14, 2024

Complaint Overview

Complainant

Former student at a Bridge International Academies school

Concerns

Child sexual abuse

Cross-Cutting Issues
Community Health and Safety

Project Information

Region
Africa
Institution
IFC
Name & Number
Learn Capital Venture Partners Project #32429
Company
Learn Capital Venture Partners III LP
Sector
Health and Education
Category
FI
Commitment

USD$20.0m equity

Synopsis

Project Overview

In 2013 and 2016, IFC invested a total of US$13.5m of equity in NewGlobe Schools, Inc., which owned Bridge International Academies, Africa’s largest chain of low-cost schools. According to IFC, at the time of its investment, Bridge operated 211 schools serving over 57,000 students in Kenya and aimed to provide quality education to children from families earning less than $2 per person per day. The investment was intended to support an increase in the number of schools in Kenya and expansion to 3 new countries. IFC exited its investment in NewGlobe Schools (the parent company of Bridge) effective March 3, 2022.

While IFC’s direct investment in Bridge terminated in March 2022, IFC had an indirect exposure to Bridge through its equity investment in a financial intermediary, Learn Capital Venture Partners III LP (Learn Capital III), which held equity in NewGlobe Schools. In February 2024, CAO was informed by Bridge and Learn Capital III that Bridge had transitioned to be an independent foundation from NewGlobe Schools thereby terminating all financial engagements NewGlobe Schools had with Bridge.

Complaint

On June 19, 2023, CAO received a complaint from a former student at a Bridge International Academies School in Kenya. The complainant said that when they were still enrolled in the school, they were sexually abused and harassed by one of their teachers on the school premises. The complainant was a minor when the abuse occurred.  Subsequently, CAO received three additional complaints from three former students raising the same concerns (see Learn Capital- 0103, and 04).

Action

In October 2023, CAO found the complaint eligible and conducted an assessment. During CAO's assessment, CAO held conversations with the complainant, Learn Capital III, and Bridge (the “parties”) to gather their perspectives on the complaints and inquire about their potential interest in engaging in a dispute resolution process facilitated by CAO or whether the complaints should be addressed by CAO’s compliance function.  Since the parties were not able to mutually agree to a dispute resolution process, the complaint was transferred to CAO’s Compliance function for appraisal of IFC, in accordance with the CAO Policy. CAO’s Assessment Report is available in English.

In August 2024, CAO completed its compliance appraisal. CAO's Compliance Appraisal Report found preliminary indications of harm to the complainants, specifically in relation to their allegations of child sexual abuse suffered at a Bridge International Academies school in Kenya. CAO also found preliminary indications of potential non-compliance with IFC’s environmental and social requirements pertaining to the appropriate identification of social risks, as well as with the supervision of social risks and impacts, specifically, risks related to child sexual abuse.  In addition, CAO found a plausible link between the alleged harm and potential IFC non-compliance.

While the complaint met the criteria for a compliance investigation, CAO found that the complaint is substantially related to the issues investigated under the Bridge-04 compliance process, currently in the monitoring phase. Therefore, in accordance with para. 93 of the CAO Policy, CAO decided to merge this complaint with the Bridge-04 compliance process.

Status

This complaint has been merged with the Bridge-04 case. 

Status as of August 9, 2024

Case Documents

  • Assessment Report
    Assessment Report
    May 29, 2024
    English
    Assessment Report
  • Compliance

    Appraisal Report
    Compliance Appraisal Report
    Aug 05, 2024
    English
    Compliance Appraisal Report
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