In 2013 and 2016, IFC invested a total of US$13.5m equity in NewGlobe Schools, Inc., which owned Bridge International Academies ("Bridge" or the “Company”), Africa’s largest chain of low-cost schools. According to IFC, at the time of its investment, the Company 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, Inc. (the parent company of Bridge International Academies) effective March 3, 2022.

In April 2018, CAO received a complaint from the East Africa Centre for Human Rights, a Kenyan NGO, filed on behalf of current and former parents and teachers in Kenya regarding Bridge International Academies. The complaint raises concerns about the Company’s compliance with Kenyan national curriculum requirements and IFC’s Performance Standards in terms of health and safety, and labor conditions. The complaint also cited concerns about economic discrimination, lack of parental inclusion, and lack of transparency. 

CAO found the complaint eligible in May 2018 and conducted an assessment trip to Kenya in September 2018. During the assessment, Bridge indicated their willingness to engage in a dispute resolution process, while the complainants preferred the complaint to be handled by CAO’s Compliance function. As there was no consensus to engage in dispute resolution, which is voluntary, the complaint was referred to CAO’s Compliance function for appraisal in accordance with CAO’s Operational Guidelines. 

CAO completed its compliance appraisal of the complaint in October 2019. The appraisal considered IFC’s efforts during supervision to assess and address concerns about sanitation at Bridge schools and to review labor and working conditions. However, CAO concluded that there were substantial concerns regarding the environmental and social outcomes of IFC’s investment in Bridge considering: (a) the specific allegations of adverse impacts to teachers, parents, and students raised in the complaints; (b) the environmental and social risk profile of the schools in light of their number, locations, and concerns regarding their construction methods; and (c) the registration status of the schools and adherence to relevant health and safety requirements. Therefore, CAO decided that an investigation was merited in response to the issues raised in the complaint. CAO’s appraisal report, which includes the Terms of Reference for the investigation, is available in English.

After initiating the investigation in October 2019, CAO staff traveled to Kenya in February 2020. The investigation team and experts spoke with complainants and community members, as well as client representatives and local authorities. In discussion with CAO, community members raised concerns regarding child sexual abuse and other child safeguarding issues. These issues resulted in a separate CAO-initiated compliance appraisal (see Bridge-04) and two subsequent complaints (see Bridge-02 and Bridge-03). CAO accepted four additional complaints in October 2023, raising allegations of child sexual abuse at Bridge schools in Kenya (see Learn Capital-01, 02, 03, and 04).

CAO finalized its investigation report and submitted it to the IFC Board on December 18, 2023. The investigation found that IFC did not satisfy its environmental and social (E&S) requirements under the Sustainability Policy during pre-investment environmental and social due diligence and project supervision. Additionally, the investigation found that, while IFC’s supervision of water, sanitation, food hygiene standards, and labor and working conditions risks and impacts improved over the years, its supervision efforts fell short of bringing its client into compliance with the IFC Performance Standards (PS). CAO also found that, when exiting its investment, IFC did not work sufficiently with the client to bring the project into compliance with PS1, PS2, and PS4 as they relate to risks and impacts in the areas of labor and working conditions; building design safety; water, sanitation, and hygiene; and school-ground safety and maintenance.

CAO shared the final report with the Complainants for the purpose of consultation as IFC developed its Management Action Plan (MAP) in response to the investigation. In accordance with the CAO Policy, IFC had 50 business days to prepare a Management Report, including a MAP. IFC requested an extension and submitted its Management Report and MAP to the IFC Board on May 15, 2024. A revised Management Report and MAP were submitted to the Board on March 24, 2025. 

On April 2, 2025, the IFC Board approved IFC’s Management Action Plan. The MAP focuses on two areas of sector-level engagement in response to CAO's project-level recommendations. On labor issues, IFC will engage with qualified labor organizations and conduct a country-level workshop to understand and discuss any gaps between Performance Standards (PS2 in particular) and Kenyan labor laws, if any, and how these might be addressed in future IFC projects. On school safety issues, IFC will support the development of a capacity-building program for schools that focuses on physical safety standards and protocols, including mechanisms that facilitate parents and students' access to existing grievance redress and remediation pathways. IFC and CAO issued a joint press release on April 7, 2025.