Education CS Fred Matiang'i makes about-turn on M-Pesa fees ban

Education Cabinet Secretary Fred Matiang’i Saturday made an about-turn regarding a directive issued on Friday banning parents from paying school fees through the M-Pesa platform.

His ministry on Saturday issued a statement indicating that the CS had indeed meant that receipts must be issued against all payments received by schools, including funds sent through electronic platforms. “Schools are hereby encouraged to continue receiving payments from parents in whatever models they find suitable for them so long as they give receipts to the parents and guardians as required,” Education Permanent Secretary Dr Belio Kipsang said in a statement.

Matiang’i’s orders had come as a surprise to many users as M-Pesa and other mobile money transfer services are increasingly the preferred means of making payments and sending cash. Kipsang added in his clarification that all Matiang’i’ intended was enhanced recording keeping to ensure accountability.

“Public schools are required, under the school fees guidelines the Ministry issued, to provide receipts against all payments they receive, be it the direct payments the government makes to schools under the Free Primary and Free Day Secondary education programmes, or the fees parents and guardians pay,” added the PS.

It would be impossible for auditors to check the accuracy of school financial record in the cases where the receipts are not granted against payments, the ministry said further. Matiang’i was addressing concerns that some school administrators may not be issuing receipts for cash paid through electronic means. The CS was speaking in Homa Bay on Friday where he said the use of M-Pesa transactions had reduced transparency in the running of public schools.

However, Matiang’i’s directive would have gone against the Government’s recent policy on electronic cash payment. The Government had announced that it will adopt paperless payment system to stop revenue leakages in its system.

It’s during his tenure as CS Ministry of ICT, that he unveiled a plan to scrap cash in favour for electronic payments. With the ban on M-Pesa for fees payment, he would have gone against his own proposal.