The government will not pay the Sh64 billion in unpaid capitation fees to public schools for previous financial years, Treasury CS John Mbadi has said.
Speaking on a local radio station, Mr. Mbadi said the national budget is cash based meaning that any allocated but unutilised funds cannot be carried forward at the end of a financial year. This has raised concerns among head teachers who say the shortfall has disrupted school operations, leading to debt accumulation and deterioration of education quality.
Why Schools Are Struggling
Reduced Capitation Per Student
- Primary schools: Sh1,420 per learner per year.
- Junior Secondary (JSS): Sh15,042 per learner.
- Free Day Secondary Education (FDSE): Originally Sh22,244 per learner but reduced to about Sh15,000 per year.
Outstanding Capitation Payments
- Sh14 billion in secondary school capitation for first term 2025.
- Government has released Sh4.5 billion for Free Primary Education (FPE) and Sh15.1 billion for Junior Secondary School (JSS) in full.
- Effects on Schools
- Can’t buy learning materials and non-teaching staff.
- Poor meals for students.
- Cutbacks on co-curricular activities like sports and clubs.
- Pressure on parents to fill gaps, leading to higher school fees.
Government’s Stand on Capitation Funds
The National Treasury CS said the government cannot pay capitation arrears from previous years, wondering if schools will refund parents who had already paid extra fees due to government delay.
“We were supposed to give schools money, we didn’t, but we don’t have a budget for that. You can’t pay arrears that were supposed to be paid to schools in 2020.” – John Mbadi, Treasury CS
However, he said secondary schools will get the remaining Sh14 billion by end of term.
School Heads Propose Parents Pay More
The Kenya Secondary Schools Heads Association (Kessha) has suggested school fees increase to bridge the gap:
- National Schools: Sh19,628 per year.
- Extra-County Schools: Sh27,488 per year.
- Day Schools: Currently fee free but Kessha proposes a new annual fee of Sh5,372 per learner.
Why the Fee Increase?
✅ Capitation rates haven’t been reviewed since 2018.
✅ Inflation has increased the cost of goods and services.
✅ Schools are in debt and at risk of closure if funding issues persist.
“The partial and delayed disbursement of capitation funds, coupled with the rising costs of goods and services, has put a lot of strain on the management and sustainability of schools.” – Willy Kuria, Kessha Chair
What Next?
The school capitation funding debate continues. While parents and schools want full funding, the government says past arrears cannot be paid. As a result parents will bear the burden through higher fees to keep schools running.