The Ministry of Education has withheld Sh1.1 billion in capitation funds after discovering enrolment discrepancies affecting thousands of schools in Kenya.
The Ministry of Education has halted the release of Sh1.1 billion in capitation funds, citing glaring inconsistencies in school enrolment data uncovered during a nationwide audit. The freeze affects primary, junior, and senior schools whose numbers do not match system records.
Education CS Julius Ogamba said the ministry cannot release funds until enrolment verification is complete, warning that public money will not be disbursed based on inaccurate or manipulated data. “We must protect taxpayer money,” he said. “Only verified schools will receive capitation.”
The audit has so far flagged 87,000 ghost learners and ten schools that appear to have no learners at all. The discovery has forced the ministry to extend the verification timeline multiple times since September 2025.
In the recent term, the government disbursed Sh16.5 billion in capitation, including Sh10 billion for Free Day Secondary Schools, Sh5.1 billion for Junior Schools, and Sh1.7 billion for Primary Schools. Officials now believe past allocations may have been inflated due to falsified enrolment figures.
PS Julius Bitok urged head teachers to verify their data urgently to avoid delays next term. He emphasized that accurate enrolment is the foundation of the capitation system and that future allocations will be strictly tied to verified numbers.
The revelations have sparked public concern, with some stakeholders calling for a full overhaul of the capitation model. They argue that the current system—dependent on school-reported enrolment—creates opportunities for manipulation.
As the Ministry prepares to hand over its final verified report to investigators, the education sector now awaits a possible shake-up. If wrongdoing is established, the implications could stretch far beyond the withheld Sh1.1 billion.
