Senators are calling on the National Treasury to explain the failure to release Sh64 billion in capitation arrears for school fees. Nairobi Senator Edwin Sifuna has expressed concern over the urgent cash flow issues facing public schools nationwide and questioned whether there is a long-term plan to prevent delays in fund disbursement, ensuring continuous financial support for school operations, infrastructure, and supplier payments.
Sifuna is seeking clarification on the measures being taken to protect school principals and management from potential legal and financial repercussions due to unpaid suppliers and increasing pressure from various stakeholders. He stated, “I rise pursuant to Standing Order No.53(1) to seek a Statement from the Standing Committee on Education regarding the delay and failure to remit capitation funds to public schools currently amounting to Sh64 billion in arrears.”
Nominated Senator Esther Okenyuri highlighted that the delay in capitation has made it difficult for school heads, emphasizing that they should not be expected to use their own funds to run the schools. She urged the government to prioritize the disbursement of capitation so that school leaders can pay support staff and provide meals for students, ensuring they remain in school.
Nominated Senator Beatrice Ogolla also stressed the importance of timely fund disbursement for the success of schools, stating that effective and efficient school operations depend on receiving these funds within the designated timeframe.
But what is capitation?
Capitation is the allocation in tuition fees that the government provides to each student as part of its mission to realize the Right to Education in Kenya.
The government launched the Free Day Secondary Education (FDSE) initiative in 2008, providing capitation for every student.
In 2008, the capitation amount per student was Sh10,625. This figure rose to Sh 12,870 in 2015 and subsequently to Sh 22,244 in 2018.
As a result, public secondary schools were barred from charging parents tuition fees since the government funded it.
Nonetheless, they were permitted to charge boarding fees, which is also determined by the Ministry of Education.
How the money is distributed
Capitation is allocated to schools in three installments throughout the year, with schools receiving 50 percent of the per-student amount in the first term, 30 percent in the second term, and 20 percent in the third term.
School Heads must register their students with NEMIS to access capitation.
How the capitation challenges arose
In an interview with former Kenya School Heads Association Chairperson Indimuli Kahi on November 2, 2023, Indimuli informed the Star that the underfunding of secondary schools began in 2019.
According to Indimuli, the issue started when funding shifted from being distributed per term in the 50-30-20 percent manner to quarterly allocations based on the Financial year.
Indimuli stated that in 2019, when the government still provided funding per term, schools received 95 percent of their overall budget.
“In 2019, each student experienced a funding shortfall of Sh 1,127,” he remarked.
Once the capitation began being allocated quarterly as per the financial year, the capitation shortfall per student rose to Sh 5,000 for the 2020/21 financial year.
“The total capitation shortfall for the 2020/21 financial year was Sh16 billion,” Indimuli noted.
For the 2021/22 Financial year, each student had a capitation shortfall of Sh4,451, amounting to a total of Sh15 billion.
He indicated that for the 2022/23 Financial year, the capitation shortfall per student reached Sh4,905, resulting in a total of Sh 18 billion.
“The issues the ministry is encountering stem from chronic underfunding over the years. It is not simply a problem of the last financial year. From 2019 to 2023, the complete capitation shortfall is Sh54 billion,” Indimuli said.
When the capitation cut was announced
On November 1, 2023, when the Education Cabinet Secretary appeared before MPs, he revealed a possible capitation reduction for secondary school students in 2024 by Sh6,952 if the government does not provide a supplementary budget of Sh22 billion.
In 2023, students received Sh16,428 in capitation.
For 2024, the CS noted that the capitation could decrease to only Sh15,476 per student if no actions are taken to close the current Sh22 billion budget gap.