Cash crunch looms as government yet to release funds hours to reopening

With just hours remaining until schools reopen across the country, institutions are staring at a financial crisis, as the government has yet to release capitation funds critical for their operations.

The exit of 965,501 candidates who sat last year’s Kenya Certificate of Secondary Education (KCSE) examination, coupled with the absence of a Form One class this year, is expected to significantly dent the financial muscle of secondary schools.

A simulation by The Sunday Standard on the exit of the 2024 candidates estimates that institutions could lose up to Sh21 billion in capitation. Schools also stand to lose additional revenue from direct fees paid by parents, further complicating their operational sustainability.

Yesterday, the government said it was releasing Sh48 billion for the first term capitation. Sh4.1 billion will go to primary schools and Sh15.1 billion has been allocated toto free day junior secondary and Sh28.9 billion to free day secondary schools.

Adding to the pressure is the long-standing reduction of Sh5,000 per student from the total capitation of Sh22,244 allocated for secondary school students. This cut has disrupted school operations for years.

The delay in funding leaves schools in a state of uncertainty just as they prepare to reopen for the new academic year.

Education Cabinet Secretary Julius Ogamba had assured the public in December that capitation funds would be disbursed before schools reopened in January. However, school heads report that the funds have not yet reached their accounts.

“We are working with the Treasury to ensure capitation is in schools before they open. It may not be the full amount, but whatever is available will be sent to avoid challenges,” Ogamba stated during a December town hall meeting at the Kenya Institute of Curriculum Development (KICD).

In response to the funding gap, schools have shifted the financial burden to parents, demanding direct payments and introducing extra levies.

Dozens of parents interviewed by The Standard shared messages from school administrations requesting additional payments.

One message read: “Dear parents, you are expected to deposit Sh1,000 PTA on the school account. Activity and assessment/exam money is included in the Sh1,000. Teachers will not receive cash payments. Assessment books are to be acquired from the office only.”

Another school requested parents to pay at least 70 per cent of the First Term fees before students could be allowed back. Additionally, a Sh3,500 fee for remedial lessons was introduced.

“A gentle reminder that our institution will reopen on Monday, the 6th. The minimum entry fee deposit is 70% of the term’s total fees. Note that maize and beans are not recognised as currency,” read one such message.

The National Parents Association is now calling on the government to intervene and address these “unsanctioned” levies.

“We want the government to make a pronouncement on the issue of school fees. Parents are paying way above what the Ministry has set, yet no action has been taken against school heads,” said Silas Obuhatsa, the association’s chair.

Obuhatsa highlighted how extra charges for remedial classes, teacher motivation programmes, examination fees, and infrastructure levies have pushed boarding school costs beyond the Ministry’s guidelines.

Administrators warn if the funds are not disbursed immediately, operations will be severely strained.

Kenya Secondary School Heads Association (KESSHA) chairman Willy Kuria stated that the delays have exacerbated longstanding issues caused by reduced capitation funding.

“The original capitation of Sh22,244 was already insufficient. The reduction to Sh17,000 annually has made the situation worse, and schools are struggling. We hope the government restores full funding this year,” Kuria said.

A promise by former Education Cabinet Secretary Ezekiel Machogu to restore full capitation funding in 2023 remains unfulfilled.

The government has yet to implement recommendations from the Presidential Working Party on Education, nearly two years after its proposal to increase funding.

Under the proposal, capitation for primary school learners would rise from Sh1,420 to Sh2,238, representing an increment of Sh818. Junior secondary learners would receive Sh15,043, while senior secondary students would get Sh22,527 annually.

The proposal also includes a “minimum essential package” for schools to fund day-to-day activities: Comprehensive schools would receive a cumulative Sh2,239,200 annually under this plan.

However, apart from capitation for junior secondary learners introduced under President William Ruto’s administration, these proposals remain unimplemented.