Nairobi, August 25, 2025 – The government has announced a significant step to avert a looming financial crisis in schools across the country. On Tuesday, August 26, the National Treasury will release KSh23 billion to the Ministry of Education, marking a major relief for school heads who have been grappling with budgetary shortfalls since the beginning of the academic year.
The announcement was made by National Treasury Cabinet Secretary John Mbadi during the launch of the FY 2026/27 and Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC).
“We want to get more resources for capitation so that our children can go to school. We also want to give more money to the Higher Education Loans Board (HELB). Tomorrow, we are releasing the money to the Ministry of Education—KSh17 billion for capitation and KSh5.9 billion for examinations,” Mbadi declared.
This allocation comes at a time when pressure has been mounting on the government to address persistent delays and inadequate funding that threaten the smooth running of public schools.
What the KSh23 Billion Covers
Of the total KSh23 billion, KSh17 billion will go directly towards school capitation—a critical component of the government’s free primary and subsidized secondary education program—while KSh5.9 billion is earmarked for the administration of national examinations.
Additionally, Mbadi confirmed that the Treasury will release funds for the Higher Education Loans Board (HELB) within the week, ahead of the September intake, to cushion students pursuing tertiary education.
“We will also look for money for HELB this week so that our children can go to school,” Mbadi assured.
The Capitation Dilemma: A Longstanding Problem
Capitation, the per-student allocation by the government to public schools, was designed to ease the financial burden on parents and ensure smooth school operations. For secondary schools, the allocation currently stands at KSh22,244 per student annually, while primary schools receive KSh1,420 per pupil.
However, despite these figures on paper, schools have frequently complained that the funds are delayed, inconsistent, and insufficient. According to Mbadi, this problem is not new.
“We are not giving enough money for capitation; we have not been doing it for seven years, and I have no apologies to make. I have sat with the CS and PS for Education to look at that gap under the instruction of the president, and we have seen the gap,” Mbadi admitted candidly.
Why Schools Are Struggling
Education stakeholders point to several factors that have worsened the capitation crisis:
1. Rising Enrolment under 100% Transition Policy:
Since the adoption of the policy guaranteeing every learner a spot in secondary school, enrolment numbers have soared. While laudable, this has stretched resources thin.
2. Inflation and Increased Operational Costs:
The cost of essential items like food, utilities, and learning materials has risen sharply over the years. However, capitation amounts have remained largely unchanged.
3. Delayed Disbursements:
Schools often receive funds in arrears, forcing them to operate on credit or demand unofficial levies from parents.
Government’s Defense: Setting the Record Straight
Education CS Julius Ogamba recently dismissed claims that the government had reduced the capitation amount for secondary school students from KSh22,000 to KSh16,000.
“Nobody has ever said that we are reducing the money from KSh22,000 to KSh16,000. I don’t know where that came from,” Ogamba clarified in a press briefing on July 28. “Even my colleague never said anything close to that.”
Ogamba appealed to political leaders and other stakeholders to focus on practical solutions rather than spreading misinformation that could cause unnecessary panic among parents and school heads.
“What happens in budget-making is a matter of looking at available funds and allocating them across ministries. The education sector deserves and will continue to receive the support it requires,” he added.
Implications for Parents and Learners
The delayed funding has direct consequences for millions of Kenyan families. Public schools, particularly in rural areas, have had to grapple with mounting debts and shortages of essential supplies. In some cases, school heads have resorted to sending students home for fees disguised as “development contributions,” despite government policy prohibiting such practices.
For parents already strained by the cost of living, this has meant dipping deeper into their pockets—sometimes to pay for basic items like chalk and examination papers.
Teachers and School Heads Speak Out
The Kenya Secondary School Heads Association (KESSHA) has repeatedly warned that schools could grind to a halt if capitation delays persist. According to KESSHA Chairperson, indebtedness among schools has reached alarming levels.
“When money comes late, schools cannot pay suppliers, and when suppliers are not paid, they cut off deliveries. It becomes a vicious cycle,” one headteacher told us anonymously.
Teachers’ unions, including KNUT and KUPPET, have also raised concerns that the financial strain is undermining the quality of education, particularly in boarding schools where costs are higher.
The government’s commitment to release KSh23 billion and expedite HELB disbursements has been welcomed as a short-term relief, but analysts warn that it does not address the structural problems in education financing.
Education policy experts argue that Kenya needs to rethink its funding model to accommodate demographic realities and economic challenges. This could include:
Revising capitation rates to reflect inflation.
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