The National Treasury has reduced capitation for public secondary schools from Sh22,244 to Sh16,900 per learner, citing growing fiscal pressures and unsustainable funding obligations.
Treasury Cabinet Secretary John Mbadi announced the revision during a session with Members of the National Assembly, warning that the government can no longer fully fund free primary and secondary education.
Appearing before the National Assembly Education Committee, chaired by Vice Chairperson Eve Obara, CS Mbadi said Kenya’s current economic situation—especially ballooning debt servicing obligations—has severely constrained the education budget.
“We are under-providing per child because of fiscal constraints,” Mbadi told MPs. “We are doing our best, but our current budget doesn’t support the policy expectations. The Treasury has never failed to disburse what was approved—but what was approved is not enough.”The capitation cuts come amid mounting frustration in Parliament over chronic underfunding, delayed disbursements, and claims that public funds are being allocated to non-existent “ghost schools.” Lawmakers said the mismatch between budgeted and actual disbursements has left many schools struggling to operate.
“We are promised Sh22,000 per student, but schools receive far less. This is creating a financial crisis. Let’s be honest with headteachers on what to expect,” said Omboko Milemba.Several MPs raised alarm over irregularities in infrastructure funding, accusing the Ministry of Education of channeling funds to schools that do not exist. Dick Maungu vowed to table a list of such institutions, saying genuine schools were being neglected.
“Meanwhile, children are sitting on stones and logs. We cannot continue to look the other way,” Maungu said.Peter Orero added that schools have been advised to plan around the Sh22,000 capitation figure, only to receive much less, leading to confusion and financial mismanagement.
“If you can’t give the full amount, tell schools the truth so they can plan realistically,” Orero said.CS Mbadi defended the Treasury’s position, saying the landmark free primary and secondary education programs introduced under former Presidents Kibaki and Kenyatta are no longer fully sustainable.
He noted that capitation disbursements were made in January and May this year, and that alternative financing options such as securitization and public-private partnerships are being explored.
Despite these assurances, MPs demanded greater transparency. Julius Taitumu insisted that Parliament must be furnished with honest and timely data. “Kenyans deserve the truth,” he said.
Concerns were also raised about stagnated funding for special needs schools. Christine Ombaka questioned why capitation for these institutions has not increased despite the higher costs of supporting learners with disabilities.
In response, CS Mbadi said top-up allocations of Sh2,300 and Sh35,730 per learner had been set aside for primary and secondary special needs institutions, respectively.
Lawmakers also demanded equitable distribution of infrastructure funds, with Mary Emaase urging that rural and underserved areas not be left behind. “Every child must benefit regardless of their location,” she said.
The Committee directed the Treasury and Education Ministry to provide a full breakdown of all schools that have received infrastructure funds, including the amounts allocated, within two weeks.
University and TVET funding also came under scrutiny, with MPs raising concerns about delayed government support to students in private universities and financial distress in public institutions. Phyllis Bartoo warned that some students are dropping out due to unpaid capitation.
“Are you aware that students in private universities placed there by government are suffering? We need transparency on this,” she said.CS Mbadi reiterated Treasury’s commitment to higher education reforms under the Differentiated Unit Cost model and urged universities to cut costs and rethink their operations.
The meeting was also attended by Education CS Julia Ogambo, PS for TVET Esther Mouria, and PS for Higher Education Dr. Beatrice Inyangala.
