In a decisive move to stabilize Kenya’s education sector, the National Treasury has announced the disbursement of Ksh23 billion aimed at resolving chronic capitation shortfalls and securing the upcoming national examination cycle.
Treasury Cabinet Secretary John Mbadi confirmed the release of the funds, signaling a shift in the government’s approach to education financing. The disbursement, which follows weeks of intense consultation with the Ministry of Education, is designed to ease the financial stranglehold on public schools and ensure that learning remains uninterrupted as the academic year reaches its peak.
A Breakdown of the Multi-Billion Allocation
The lion’s share of the package—approximately Ksh17 billion—is earmarked for school capitation. These funds are vital for the day-to-day operations of primary and secondary schools, covering essential costs such as learning materials, utilities, and co-curricular activities.
An additional Ksh5.9 billion has been allocated specifically to the Kenya National Examinations Council (KNEC). This funding is critical for the administration of national exams, covering the logistical costs of supervision, security, and marking, thereby insulating the examination process from potential budget-related delays.
Strategic Shift in Education Financing
Speaking at the Kenyatta International Convention Centre (KICC) during the launch of the Financial Year 2026/27 and Medium-Term Budget Preparation Process, CS Mbadi acknowledged that the sector has been hampered by years of underfunding.
“We have not been giving enough money for capitation, and we are now reviewing the entire situation,” Mbadi stated. “Following direct instructions from President William Ruto, we are prioritizing education funding to ensure our schools receive adequate and timely support.”
The Treasury CS further revealed that he has been working closely with Education CS Julius Ogamba and Basic Education PS Julius Bitok to align fiscal policies with the education calendar. This collaboration aims to move away from the “stop-start” funding cycle that has previously forced school heads to defer payments to suppliers or send learners home.
Focus on HELB and University Stability
Beyond basic education, the Treasury is also mobilizing resources for the Higher Education Loans Board (HELB). Reassuring students ahead of the September intake, Mbadi emphasized that the government is committed to ensuring that university and college students receive their tuition and upkeep loans on time.
“We will look for the necessary funds for HELB so that our children can stay in school and focus on their studies without the burden of financial uncertainty,” Mbadi added.
Countering Misinformation
The announcement comes as a relief to parents and educators who have been navigating a landscape of conflicting reports regarding capitation levels. Earlier this year, reports suggested a potential slash in per-student funding from Ksh22,000 to Ksh16,000—claims that Education CS Julius Ogamba has since firmly dismissed as misleading.
With the latest infusion of Ksh23 billion, the government aims to restore confidence in the sector, ensuring that schools are well-resourced to deliver quality education and maintain the integrity of national assessments.
