There are growing numbers of low-cost private schools in urban informal settlements in developing countries. It has been argued that these institutions may constitute alternatives for government schools, as they are able to meet the educational needs of children in urban informal settlements. This study explores the question of whether low-cost private schools can meet their needs, not only in terms of primary education but also with regard to access to further education. The study selected 12 private schools in Kibera and 2 government schools neighbouring Kibera, asking head teachers which secondary school each primary school leaver had joined. The findings show that whereas over two-thirds of primary school leavers in general went on to secondary school, pupils graduating from government primary school were more likely to be enrolled in government secondary school than those pupils who completed the low-cost private primary school in Kibera. Moreover, performance in national examinations was lowest among girls attending the school in Kibera. The study thus argues that while the low-cost private primary school can meet the educational needs of children in the informal settlement to some extent, it cannot represent an alternative to the government primary school.