Gov’t Won’t Settle Sh64 Billion Unpaid School Funds – CS Mbadi.
The government has declared that it will not disburse the Sh64 billion in accumulated capitation arrears owed to public schools over the years.
According to the Cabinet Secretary for The National Treasury and Economic Planning, John Mbadi, the budget does not provide for the payment of allocated but unreleased funds once a financial year has ended.
Mbadi explained that since the budget operates on a cash basis, unutilized allocations cannot be carried forward. He questioned how the government would account for such payments, emphasizing that there are no reserved funds set aside for delayed capitation.
“If a financial year has ended and you didn’t pay it, there’s no money [to pay later]. We don’t keep money somewhere. Who do we pay that money to if the capitation was not released?” Mr Mbadi posed.
School administrators have persistently called on the government to release the balance of capitation funds, noting that as school enrolment continues to rise, financial support has dwindled.
They argue that this shortfall has left many schools struggling to manage operations, with some accumulating debts and facing lawsuits from suppliers.
Many institutions have been unable to purchase essential learning materials, compensate non-teaching staff, or provide quality meals for students. The financial crisis has also led to the scaling down of co-curricular activities, including sports and other educational programs.
Capitation Breakdown and Funding Shortfall
Under the Free Primary Education (FPE) programme, each learner is allocated Sh1,420 annually, while junior secondary school students receive Sh15,042.
Secondary school learners are entitled to Sh22,244 per year through the Free Day Secondary Education programme, but this amount has decreased to approximately Sh15,000 annually.
Mbadi acknowledged that in some cases, school administrations compel parents to pay higher fees than the recommended amounts when government disbursements fall short.
He posed a critical question regarding the reimbursement of such contributions should the government later release the funds, urging that budgeted amounts be fully disbursed in future allocations.
“We were supposed to give schools money … we didn’t give them but we don’t have a budget for that. You can’t cover arrears that were supposed to be paid to schools in 2020,” he added.
The Treasury CS assured that primary and junior schools had already received their first-term funds, while secondary schools are still awaiting Sh14 billion, which he confirmed would be disbursed before the term concludes. Public universities, he noted, require an annual allocation of Sh107 billion.
The government had allocated Sh48.8 billion for school capitation. Out of this, Sh4.5 billion was allocated and fully paid for the FPE programme in the first term, while Sh15.1 billion was fully disbursed to junior secondary schools.
Secondary schools were allocated Sh28 billion, out of which Sh14 billion has been paid, with the remainder expected to be disbursed before the term ends.
Earlier this month, secondary school principals submitted a proposal to the Ministry of Education suggesting an increase in parental contributions to sustain school operations.
The Kenya Secondary Schools Heads Association (Kessha) argues that the capitation funds, last reviewed in 2018, have not only been reduced but have also failed to account for inflation.
Proposed Increase in School Fees
Kessha proposes that parents with children in national schools contribute an additional Sh19,628 annually, while fees for extra-county schools should rise by Sh27,488. Currently, learners in day schools do not pay tuition fees, but Kessha is pushing for an annual contribution of Sh5,372 per student.
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The association warns that the combination of delayed capitation disbursements and rising costs of goods and services has placed an immense financial burden on school management.
The proposal, signed by Kessha chair Willy Kuria, underscores the urgency of the situation, warning that unless corrective measures are taken, many secondary schools in Kenya face imminent closure, jeopardizing the future of countless students.
Gov’t Won’t Settle Sh64 Billion Unpaid School Funds – CS Mbadi.
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