12 Years Later, Schools Still Running on Outdated Capitation Rates.
Public secondary school principals across Kenya have renewed calls for a comprehensive review of the capitation framework established in 2014, citing persistent underfunding that continues to strain institutional operations.
The concerns have resurfaced as schools reopened for the third term of the 2026 academic year, a period during which candidates sitting the Kenya Certificate of Secondary Education (KCSE) examinations undertake final preparations, including practical assessments that require the purchase of chemicals, equipment and other specialised materials.
The Kenya Secondary Schools Heads Association (Kessha), the umbrella body representing public secondary school principals, has published a detailed analysis showing that capitation disbursements have consistently fallen short of the Sh22,244 per learner annually approved under the Free Day Secondary Education (FDSE) programme.
Disbursement Shortfalls in the 2026 Financial Year
According to figures released by Kessha, schools had by the close of the second quarter of the 2026 academic year received a cumulative total of approximately Sh16,456.60 per learner, against the expected annual allocation of Sh22,244. This leaves a shortfall of approximately Sh5,787.40 per learner, representing a disbursement rate of roughly 74 per cent of the annual entitlement.
A circular dated July 28, 2026, confirmed that the Ministry of Education released Sh3,367.60 per learner for Term Three, an amount below the Sh4,449 schools are entitled to receive for that term. Kessha chairperson Willy Kuria stated that disbursements have fallen below the ministry’s stated capitation formula in all three terms of the 2026 academic year.
The termly breakdown, as detailed by Kessha, is structured as follows:
- Term One: Schools are entitled to Sh11,122 per learner. Kuria indicated that schools received Sh6,577 per learner, with a further Sh1,375 retained by the ministry, bringing the total to Sh7,952 per learner — a shortfall of Sh3,170 per learner.
- Term Two: Schools are entitled to Sh6,673 per learner. Kuria stated that schools received Sh4,852 per learner, with Sh285 retained by the ministry, bringing the total to Sh5,137 per learner — a further deficit of Sh1,535 per learner. A separate ministry memo issued by Basic Education Principal Secretary Julius Bitok placed the Term Two tuition allocation at Sh4,766.49 per learner, with an additional Sh60 remitted to the Centre for Mathematics, Science and Technology Education in Africa (CEMASTEA) for capacity building under the Strengthening of Mathematics and Science in Secondary Education (SMASSE) programme, and Sh225 retained from the operations account for centralised co-curricular activities.
- Term Three: Schools are entitled to Sh4,449 per learner. The Ministry of Education released Sh3,367.60 per learner, leaving a further shortfall of approximately Sh1,081.40 per learner.
Multi-Year Disbursement Trend
Kessha’s analysis of disbursement patterns over the preceding four years indicates a persistent and recurring gap between approved and actual capitation releases:
- 2023: Schools received Sh11,892.14 per learner, equivalent to 53.46 per cent of the expected annual allocation.
- 2024: Schools received Sh16,205.96 per learner, equivalent to 72.86 per cent of the expected annual allocation.
- 2025: Schools received Sh15,385.12 per learner, equivalent to 68.55 per cent of the expected annual allocation.
- 2026: Schools received approximately Sh16,141.89 to Sh16,456.60 per learner, equivalent to between 72 and 74 per cent of the expected annual allocation, depending on the reporting period referenced.
Cluster 4 schools, comprising predominantly day secondary schools, have been identified as the most severely affected category, given their near-total dependence on government capitation in the absence of boarding fees or other parental contributions.
Treasury and Ministry Responses
Treasury Cabinet Secretary John Mbadi appeared before the National Assembly Committee on Education following demands by Kessha for the release of an outstanding Sh18 billion in capitation arrears.
During the session, it emerged that Treasury has been releasing approximately Sh16,900 per learner annually, against the approved Sh22,244. Mbadi attributed the disbursement gap to constrained fiscal space.
Education Cabinet Secretary Julius Ogamba, addressing the funding concerns, affirmed the government’s commitment to fulfilling its obligations to learners under Article 53(1)(b) of the Constitution, which entitles every child to free and compulsory basic education.
Ogamba directed school heads and principals to ensure prudent use of public resources entrusted to their institutions and to refrain from imposing unauthorised levies, adding that verified cases of misappropriation or unauthorised levies would be addressed.
Kessha’s Proposed Fee Restructuring
At the 49th Annual Kessha Conference held in Mombasa from June 22 to 26, 2026, the association presented proposals to newly appointed Basic Education Principal Secretary John Ololtuaa for a restructuring of the fee framework across school clusters. Kessha’s proposals include the following per-cluster changes:
- Cluster 1 (national schools): Parents currently contribute Sh53,554 annually, bringing the total per-learner cost, inclusive of government capitation, to Sh75,798. Kessha’s analysis places the actual annual cost of educating a learner in a Cluster 1 institution at Sh110,025, and proposes that parental contributions rise to Sh87,781 annually, an increase of Sh34,227.
- Cluster 4 (day schools): Government capitation is intended to cover the full cost of education for learners in this category, with parents currently contributing nothing. Kessha proposes a fee of Sh29,919 per learner, which would require affected parents to contribute Sh7,675 above the existing capitation allocation.
Kuria stated that the capitation framework, developed in 2015, did not adequately account for inflation or the rising cost of living, and that the national budget had increased by 115 per cent between the 2015/16 and 2026/27 financial years, from Sh2.25 trillion to Sh4.82 trillion.
Impact on Academic Performance
Kessha has linked chronic underfunding to a documented decline in academic outcomes at the national level. According to data cited by the association, the number of KCSE candidates scoring a mean grade of E rose from 30,822 in 2022 to 48,174 in 2023, and further to 48,333 in 2024.
Kuria stated that the majority of these grades originated from day secondary schools, which host more than 70 per cent of the national secondary school student population.
Casper Maina, chairperson of Cluster 1 schools and principal of Nairobi School, stated that the capitation framework, introduced in 2014, had not been reviewed despite substantial changes in the cost of providing education over the intervening period.
Kuria further stated that the estimated annual cost of feeding a single secondary school learner stood at Sh61,000, a figure significantly above the government’s per-learner capitation allocation, placing additional strain on institutional budgets, particularly in day schools where parental contributions toward feeding costs are limited or absent.
Read Also: Teachers Issue 7-Day Strike Notice After Killing of Samburu JSS Teacher
Principals in Nairobi, Nakuru, Murang’a and Mombasa have separately reported that schools are operating on supplier credit, with outstanding debts carried over from previous terms and academic years compounding the financial pressure created by delayed and partial disbursements.
Conclusion
The Ministry of Education and the National Treasury have maintained that disbursement timing has improved in recent terms, coinciding more closely with the opening of school calendars. However, official statements have not addressed the adequacy of the capitation rate itself, which has remained unchanged since its establishment under the Free Day Secondary Education programme in 2014/2015.
Kessha’s published analysis, alongside proposals submitted to the Ministry of Basic Education, indicates continued advocacy by school heads for a formal review of the per-learner capitation rate, alongside a restructured fee framework across all school clusters, as the 2026 academic year moves into its final term ahead of the KCSE examinations scheduled to run from October 19 to November 20, 2026.
12 Years Later, Schools Still Running on Outdated Capitation Rates.
Follow Teachers Updates on Facebook, LinkedIn, X (Twitter), WhatsApp, Telegram, and Instagram. Get in touch with our editors at hello@teachersupdates.news.
