Treasury, headteachers at odds over release of capitation funds

Dr Chris Kiptoo Principal Secretary National Treasury, during Retirement Benefits Authority (RBA)consultative forum, on 16th April 2025 at Sarova Panafric hotel in Nairobi county. [Edward Kiplimo,Standard]

The National Treasury has announced that it has completed the disbursement of all capitation funds owed to public primary, junior secondary, and secondary schools for the current financial year.

This comes even as headteachers across the country continue to raise the alarm over persistent funding delays and growing pressures in the education sector.

Speaking during a media briefing, Treasury Principal Secretary Dr Chris Kiptoo confirmed that the final tranche of capitation funds-amounting to Sh22 billion-was released on May 19, covering Term Three allocations for all public schools.

"I wish to inform Kenyans that we are up to date with the release of funds to schools. We have paid for Term One and Term Two, and on May 19, we released the final amount for Term Three. We have no outstanding balance for this financial year," said Dr Kiptoo.

The Treasury's assurance, however, contrasts with continued reports from school principals who say they are yet to receive the funds. They warn that the delays have disrupted essential operations, such as the provision of meals, teaching materials, and payment of utility bills.

Jane Auma, a headteacher in Kisumu, said schools are under immense financial strain, with students bearing the brunt of systemic delays.

"Last term, the government owed learners Sh4,000, and this term we're owed Sh3,000 per learner. The ministry has warned us against asking parents for assistance. We cannot suffer in silence," she said.

Another school head from Kiambu expressed similar frustration, revealing that his institution had received only a fraction of the funds required.

"We are expected to run an entire institution on a token. Our classrooms are crumbling, and there is barely space for our Grade Seven pupils. It's not just difficult-it's impossible."

Headteachers called on Parliament to summon senior Ministry of Education officials for questioning.

However, Dr Kiptoo distanced the Treasury from school-level concerns, saying that if schools had not received the funds, it was an issue for the Ministry of Education.

"We have played our part. Any questions about whether schools received the funds should be addressed by the Ministry," he added.

Public school heads are also grappling with other major issues, including deteriorating infrastructure, a shortage of teachers, and rising student numbers-challenges worsened by the government's 100 per cent transition policy, which aims to keep all learners in school through secondary level.

According to Treasury figures, the 2024/2025 budget allocated Sh54.6 billion for Free Day Secondary Education, Sh30.4 billion for Junior Secondary Schools, and Sh8.4 billion for Free Primary Education.

Dr Kiptoo noted that Sh11.6 billion was disbursed to secondary schools in the final tranche, Sh8.9 billion to junior secondary, and Sh1.4 billion to primary schools.

A Ministry of Education circular dated May 28, 2025, signed by Principal Secretary Julius Bitok, confirmed that Sh2,318.79 per student was released for Term Two, well below the expected Sh4,512.60-just 30 per cent of the annual allocation per learner. Additionally, schools were informed of a basic allocation of Sh84,205.29.

Paul Wanjohi, Director of Sharp Education Centre, emphasised that capitation is a statutory right linked to data in the National Education Management Information System (NEMIS). "Disbursements as low as Sh93 suggest either failure by heads to update enrolment data or administrative lapses in processing records," he said.

He added that heads of institutions must maintain accurate and verifiable records, while the Ministry must validate data in advance of disbursements. "Capitation is a public resource governed by law. Both institutions and government must act transparently and accountably to ensure full, timely funding," he stated.