Schools face cash crisis as capitation delays threaten national exam preparations

This story has significance for readers across Kenya and beyond.

A capitation shortfall has left schools without billions of shillings needed to run institutions, with principals warning that the funding crisis could disrupt preparations for national examinations when schools reopen for the third term in a week’s time.

The school managers warn that further delay could worsen planning for the critical term and that the government has not remitted a total of Sh22.5 billion owed for the first and second terms of the year.

Principals who spoke to Nation said this has forced them to seek support from parents and sponsors, negotiate with suppliers and take on more debt to keep their institutions running.

The most affected are day secondary schools which rely entirely on government funding and host over 70 percent of learners in secondary school.

The Kenya Secondary School Heads Association (KESSHA) said the funding crisis has worsened the financial strain on schools, with principals forced to seek additional support from parents and sponsors to keep their institutions running.

“Schools are in debt. Sometimes we call the parents and talk to them. We tell them about our deficit, and some of them agree to supplement what the school has. They give us some money, but when they do, the Ministry of Education calls it extra fees. Unfortunately, that is how it is classified. But there is no school that can survive on this amount of money,” said KESSHA chairperson Willy Kuria.

According to the Ministry of Education, schools each learner in secondary school is supposed to be allocated Sh11,122 for Term One, Sh6,673 for Term Two and Sh4,449 for Term Three, making a total of Sh22,244 per child in one year (at the ratio of 50:30:20).

However, according to Mr Kuria school schools received Sh6,577 per learner only, while Sh1,375 was retained by the Ministry of Education, bringing the total allocation to Sh7,952 per learner in term one which left a shortfall of Sh3,170 per learner.

In the second term, he revealed that schools received Sh4,852 per learner, while Sh285 was retained by the MoE, bringing the total allocation to Sh5,137 per learner and leaving a deficit of Sh1,535 per learner.

Further he noted that schools received Sh14,572 per learner in 2025, while Sh817 was retained by the ministry for textbooks. When the retained amount is included, schools received Sh15,383 per learner, leaving a deficit of Sh6,860 per learner.

Education Cabinet Secretary Julius Ogamba said the government had not yet released the last tranche of capitation to public schools, but questioned claims by school principals that institutions were facing a KSh22.5 billion shortfall. Mr Ogamba said the ministry had undertaken a verification exercise to align learner numbers used in determining capitation allocations, and questioned the basis of the shortfall figure cited by KESSHA.

“How did they arrive at that figure? What data are they using? Remember, we also did a verification exercise to align the numbers. If a principal says there is a shortfall of Sh22.5 billion, then you need to ask where they got that figure from,” he told Nation.

The funding squeeze comes as schools enter the nine-week term in which candidates will undertake intensive revision and preparations for national examinations, including practical tests that require laboratory chemicals and other specialised materials.

Principals say the problem goes beyond classroom materials, with suppliers increasingly reluctant to extend credit to schools that have accumulated debts.

“We are in limbo, hoping suppliers will deliver. But if they don’t, our students may have to share equipment. It’s unfair to them, and it makes it almost impossible to protect the integrity of the exams. How can we expect them to succeed when the basic resources simply aren’t there?” a principal in Nairobi County said in an earlier interview.

Another principal said schools previously received the full amount required for examination preparation, but are now struggling to meet the cost with the limited funds available.

“Previously, at a time like this, we would have been given the full amount to prepare for the national exams. Right now, we are still waiting, last year term three, they only gave us Sh300 per child to buy equipment. Yet sometimes the costs amount to Sh300,000. How are we supposed to survive like that?” the principal said.

The financial pressure also threatens schools' ability to complete the curriculum on time.

“With limited resources, school fees defaults, and unpaid staff, covering the curriculum on time is a huge challenge. We are racing against the clock, but it feels like we are not ready for the exam,” another principal said.

A principal from Bomet County said schools have been forced to negotiate with suppliers and seek credit even as they tried to complete the syllabus.

“The little money we received barely dented the debts. It feels like a cycle we can’t escape—as soon as we clear one bill, another piles up. We are now pleading with suppliers and even talking to banks to extend us credit just to keep the school running. Meanwhile, we must keep teaching and finish the syllabus. The pressure is unbearable,” he said.

Mr Kuria said some schools had even been forced to keep suppliers away because of accumulated debts.

“Suppliers are on our necks, and they no longer trust schools. We have to play hide-and-seek and, at times, instruct the guards at the gate not to let them come into the school. We’ve ended up living a dishonest life,” he said.

Reporting originally appeared via Nation Africa. Read the full source for additional context.