A sweeping Ministry of Education audit has uncovered a major capitation scandal, with more than 50,000 secondary school students flagged as “ghost learners.” The scheme, if unchecked, could have cost taxpayers more than Sh1.1 billion annually.
The discovery was revealed by Basic Education Principal Secretary Prof Julius Bitok while briefing the National Assembly’s Education Committee. He said the audit is about halfway complete, but secondary schools already stand out for inflated enrolments.
“So far, we have disbursed funds to 17,500 schools. Of the 9,500 secondary schools, 5,500 have been covered, and in these, over 50,000 learners cannot be accounted for. The numbers are not adding up,” Prof Bitok explained.
During the third term of the 2025/26 financial year, the Treasury released Sh23 billion, with Sh13 billion already disbursed to schools. Of this, secondary schools received Sh5.14 billion, junior schools Sh1.02 billion, and primary schools Sh456.4 million. Special needs schools were allocated Sh40 million.
The fraud scheme highlights how capitation funds—meant to cover tuition, laboratory materials, sports, meals, and utilities—are at risk when enrolment data is manipulated. Genuine students ultimately bear the cost as resources are diluted by non-existent learners.
The Ministry has been relying on three sources to verify student records: NEMIS, headteachers’ submissions, and sub-county directors’ reports. Once complete, the audit could see enrolments shrink by 10 percent nationwide. To safeguard the system, the PS announced plans to introduce a new Kenya Education Management Information System (KEMIS) in January 2026.
On infrastructure grants, Prof Bitok defended the Sh1.39 billion released between 2020 and 2025, clarifying that these allocations were guided by presidential directives and are not tied to the ghost learner fraud.
The PS also asked Parliament and education partners to determine sanctions against schools and officials found complicit in the scheme. “We want this committee to guide us on the next steps,” he said.
The revelations shine a spotlight on the urgent need for accountability in Kenya’s education financing. With capitation funds forming a critical part of the government’s free education promise, eliminating ghost learners will be key to protecting resources for genuine students.
