Auditor General Exposes Deep-Rooted Funding Crisis in Kenya’s Public Schools

Kenya’s public education sector is grappling with a severe funding crisis, according to a new special report from the Auditor General’s office. The report, presented to the Public Accounts Committee (PAC) of the National Assembly, paints a troubling picture of underfunding, financial mismanagement, and discrepancies within the school funding system.

Between 2021 and 2024, public schools were underfunded by a staggering Ksh.117 billion, with secondary schools bearing the largest burden—shortchanged by Ksh.71 billion. Junior secondary and primary schools were underfunded by Ksh.39.9 billion and Ksh.14 billion, respectively.

The Auditor General’s Director of Audit, Justus Okumu, told the PAC that budget allocations were routinely slashed, resulting in unpaid bills and stalled school programs. “The main problem facing public schools is underfunding,” he emphasized. “Budgets are made but are rarely honored, leading to financial strain across institutions.”

A critical fault line exposed in the report is the National Education Management Information System (NEMIS), which failed to accurately capture student enrollment data. As a result, some schools received excess funds while others were drastically underfunded. The audit found:

354 secondary schools were overfunded by Ksh.3.5 billion
99 junior secondary schools received Ksh.30.8 billion more than required
270 primary schools got Ksh.79.9 million in excess

In total, Ksh.3.7 billion was misallocated due to NEMIS-related discrepancies. Lawmakers expressed concern that the system has marginalized certain regions and perpetuated inequality. “The very nature of NEMIS was designed to disenfranchise some regions,” said Funyula MP Oundo Mudenyo.

Even more alarming were revelations about non-existent or ‘ghost’ schools receiving capitation funds. Of the 83 schools sampled during the audit:

14 non-existent schools received Ksh.16.6 billion
6 closed schools continued to receive Ksh.889,348
13 schools with mismatched names were paid Ksh.11 million

These shocking findings prompted PAC members to demand accountability. “We want to know who authorized the transfer of funds to ghost schools,” said MP Mudenyo. “Action must be taken.”

PAC Chairperson Tindi Mwale confirmed that the Ministry of Education will be summoned to explain the inconsistencies and take responsibility for the flawed systems. “We will move swiftly and demand answers from the accounting officer,” he stated.

The report underscores a critical need for financial reforms, accurate data systems, and greater transparency in school funding to safeguard the future of Kenya’s learners.