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The Kenyan government has officially stated that it will not pay the Ksh 64 billion owed to schools in capitation funds, citing financial regulations that prevent carrying forward unpaid allocations from one financial year to the next. This announcement has sent shockwaves through the education sector, with school heads, parents, and education stakeholders now grappling with the implications.

How Schools Are Affected, Including Junior Secondary Schools (JSS)
The budget shortfall is already having a severe impact on schools at all levels, from primary and secondary to the newly introduced Junior Secondary Schools (JSS). Here’s a deeper look at the consequences:
1. Junior Secondary Schools (JSS) at Risk
- Delayed Learning Materials: JSS institutions are still in their infancy, and many were expecting additional funding to purchase essential textbooks, lab equipment, and classroom resources. The financial cut means they will struggle to provide adequate learning materials.
- Teacher Shortages: Thousands of JSS teachers are under internship contracts, relying on government payments. If funding delays continue, it could impact salaries and deter more teachers from taking up JSS roles.
- Infrastructural Delays: JSS learners often lack proper classrooms, desks, and science labs. Many schools had hoped for funds to build new facilities, which may now be postponed indefinitely.
2. Strain on Secondary Schools
- Increased Student Population Without Resources: Secondary schools already struggle with congestion due to the 100% transition policy, and the lack of funds will make it harder to accommodate all learners.
- Unpaid Utility Bills: Water, electricity, and internet services in many schools are at risk of disconnection due to unpaid dues. This affects learning environments, especially in boarding schools.
- Co-curricular Activities Affected: Sporting events, music festivals, and academic trips may be suspended due to lack of funding.
3. Primary Schools Facing Financial Stress
- Non-Teaching Staff Salaries Unpaid: Many primary schools employ subordinate staff such as cooks, cleaners, and security guards who depend on government funds. The non-payment could lead to job losses or disrupted school services.
- Poor Sanitation and Hygiene: Without funds for maintenance, primary schools risk deteriorating sanitation conditions, especially in schools with a high student population.
4. The Risk of School Closures or Increased Fees

With the financial strain, school heads may be forced to increase fees or ask parents to contribute more. This could lead to:
- Higher Dropout Rates: Parents who cannot afford increased fees may withdraw their children from school.
- More Financial Burden on Parents: Schools might start asking parents for extra levies to cater for essential needs.
Government’s Justification
Treasury CS John Mbadi explained that under current budgetary policies, once a financial year ends, unpaid funds cannot be rolled over. This leaves schools with no option but to work with current allocations.
Reactions from Teachers and Unions
Kenya Union of Post-Primary Education Teachers (KUPPET)
KUPPET officials have strongly criticized the government’s move, calling it a direct attack on the education sector. They argue that teachers and students will bear the brunt of this decision, with schools forced to cut essential services.
Kenya National Union of Teachers (KNUT)
KNUT has warned that this could result in more learning disruptions, especially in public schools where funds are already stretched thin. They have called for urgent talks with the government to find a solution.
School Principals
Many school heads fear that they may have no choice but to increase school fees or ask parents for additional contributions, which could create a crisis among low-income families. Some have already begun reducing school expenditures, affecting the quality of education.
Possible Solutions for Schools
- Fee Increments: Schools may seek permission to increase fees, but this will likely be met with resistance from parents.
- Seeking Alternative Funding: Schools may turn to donations, partnerships, or county governments for financial support.
- Legal Action: Stakeholders could challenge the government’s decision, arguing that education is a constitutional right that must be fully funded.
- Policy Change: Calls for reforms in budgetary policies to allow unpaid capitation funds to be carried forward may gain momentum.
The Bigger Picture
This crisis raises concerns about the sustainability of free education in Kenya. If schools cannot rely on promised funding, the quality of education may deteriorate. Moreover, delayed payments set a precedent that could disrupt learning in the future.
Final Thoughts
The Ksh 64 billion shortfall is a wake-up call for Kenya’s education system. If not addressed, schools may be forced to compromise on essential services, hurting students and teachers alike. The government must find a way to ensure that capitation funds are released on time to sustain quality education.