Parents Push Back as Elite School's Tuition Hike Spurs Dispute

Aug 9 , 2025. By RUTH BERHANU ( FORTUNE STAFF WRITER )

An elite private school has sparked controversy over fees after its Administration more than doubled tuition for the 2025/26 academic year.

Lebawi International Academy (LIA), renowned for its high standards and international orientation, informed parents in July that the change was a currency-based adjustment rather than a fee increase.

Parents disagree. They call it “a large and unjustified price hike.” According to a statement the Parent-Teachers Association issued, “what the School calls an adjustment is, in both substance and impact, a major price increase.”

Lebawi, founded in 2004, offers a hybrid curriculum aligned with international standards and draws students from Ethiopians, the diaspora, and families of foreign nationality. It enrols more than 1,400 students across early childhood, primary, and secondary levels and operates as a private, fee-based academic institution subject to national education regulations.

The dispute dates back to an edict by education officials banning the collection of tuition in dollars. The Education & Training Authority (ETA), alongside the National Bank of Ethiopia (NBE), issued a prohibition earlier this year.

Lebawi had, for years, tied its fees to the dollar, despite existing policies against it. After the ban, the school switched to a Birr-denominated schedule that parents say closely mirrors the old dollar amounts at prevailing exchange rates.

As complaints mounted, the ETA issued a series of escalating directives. A first letter dated June 4 followed a complaint from parents who said they were being asked to pay tuition pegged to the dollar. The Authority, under Ahmed Abitew, instructed the school to halt the practice immediately.

A second letter, issued on June 30, reiterated the order and told LIA administrators to comply by July 2. Five days later, the Authority sent a third warning, expressing frustration that student registration continued under revised rates. The education authorities state that they had consulted the school’s board and secured backing from the NBE, which confirmed the prohibition on tuition in any foreign currency.

“Essentially, they wanted to compensate for the loss of profit.” Wubishet Tadelle Deputy Director Education & Training Authority (ETA)

The Authority demanded a detailed report by July 8 and called for an immediate suspension of student registration.

The school’s July notice outlined the new annual charges: 693,000 Br for early childhood and kindergarten, 840,000 Br for primary, and nearly a million Birr for Grades 9 through 12. In a letter to parents, the Administration defended the fees as final and carefully calculated to meet operational costs while sustaining educational quality in the wake of the currency shift.

Administrators insisted it was not a fee increase.

Families were not persuaded. According to leaders of the Parent-Teacher Association (PTA), the School’s Administration moved without “meaningful discussions” with the broader parent community. They argue that Lebawi bypassed legal requirements mandating a general assembly of parents and guardians before financial decisions that impact parents and that the School unilaterally imposed the new fee structure.

A virtual meeting held on July 30, 2025, brought together the PTA, school administrators, and an ETA representative, but it ended without a consensus. According to the PTA, the School refused to acknowledge the increase as a “tuition hike” and declined to call a general parent assembly, despite the 2024 education regulation requiring formal consultation and agreement before any significant change in fees.

Wubshet Tadelle, deputy director of the ETA, confirmed that Lebawi had operated under a dollar-based model. He disclosed that repeated efforts were made to bring the institution into compliance, but the School’s administrations remained steadfast that what they once earned in dollar value is no longer recoverable in local currency without an upward price change.

“Essentially, they wanted to compensate for the loss of profit,” he told Fortune.

Despite multiple attempts, Lebawi’s Administration, run by Panos Hatziandreas, declined to comment.

The authorities also conceded that while the ETA had facilitated meetings and issued clear directives, it lacked the authority to impose price ceilings or penalise schools for excessive tuition.

“Our role is to mediate and consult,” said Wubshet. “We encouraged both sides to find common ground and reach possible compromises.”

That legal gap is what frustrates parents like Abel Gebretsadik, who now faces a tuition bill exceeding 1.5 million Br for his two children. Last year, Abel paid 330,000 Br for his son’s kindergarten tuition. This year, the same level costs more than double. As his son advances to Grade 1, the fee rises to 840,000 Br, all while his younger child begins school as well.

“There was no parent meeting,” Abel said. “No platform for questions, no transparency. They just announced a new fee. We’re expected to accept it, no matter how steep or sudden.”

There is currently no cap on tuition fees, no formal mechanism to approve or reject fee changes, and no accountability beyond consultation, leaving families exposed to market forces and schools largely unchecked. Education sector experts warn that private education could face greater instability if regulatory blind spots persist.

One of such experts is Mekbib Tasew (PhD), who brings 22 years of experience in capacity building, educational research, and pedagogy design. He holds both a postgraduate and doctoral degrees from Vision International University in the United States.

“The government needs to draft a law that clearly outlines what schools can and cannot do when it comes to tuition in international schools,” said Mekbib, who served in the Addis Abeba Private Schools Association and conducted research for the group.

While he acknowledged the broader rationale behind banning forex-based tuition, he argued that secondary legislation should be introduced to protect families from abrupt or excessive fees. Mekbib believes that banning payments in forex was necessary; however, without a framework to ensure equitable price adjustment, he says, the financial burden is falling on parents.

“The state should step in, not just as a mediator, but as a regulator,” he said.

With the registration deadline looming on August 8, most families face difficult choices. Some may transfer their children, although seats at alternative schools are limited. Others will reluctantly pay the new rates to secure placements while hoping for intervention. Many, like Abel, want the government to step in not only to enforce financial policy, but also to protect the interests of parents and students.

Abdurazak Nesro, a senior legal consultant and advisor with 15 years of experience and a board member of Ethiopian media legal support, foresee the case fall under the Trade Practice & Consumer Protection Tribunal, which also covers service providers, including schools.

“There is always a consumer protection angle when there is an excessive fee,” he said. “When a school and parent have a prior agreement, any major change to that agreement should also be mutual.”

While acknowledging that contracts often favour institutions, Abdurazak believes the law is not powerless.

“Just because a parent signed a document does not mean they waived their rights,” Abdurazak told Fortune. “When a contract is deemed one-sided or abusive, legal provisions allow it to be adjusted or overridden.”

He argued that “excessive pricing or procedural unfairness” can also trigger legal intervention, even after the fact.

PUBLISHED ON Aug 09,2025 [ VOL 26 , NO 1319]