The Ministry of Education has released Sh22.03 billion in capitation funds for Term Two after a three-week delay.
In a press statement issued on May 20, 2025, Cabinet Secretary Julius Ogamba said that the funds have been disbursed to facilitate smooth learning activities and ease the financial strain that many schools have faced since the start of the term.
“The Government has today released Sh22,028,911,191.40 as capitation for Term 2 for learners in all public basic education institutions,” he said.
However, the CS did not reveal the amount allocated per learner or whether the amount includes the cash unremitted in Term I. Also not clear is whether the funds constitute the 30 percent of annual capitation reserved for Term II.
Mr Ogamba said the amount had been shared across various levels: Sh1.37 billion for Free Primary Education, Sh8.9 billion for Free Day Junior School Education, Sh118 million for Junior School Special Needs Education, and Sh11.6 billion for Free Day Secondary Education.
He noted that the move is expected to ease pressure on school administrators who have been grappling with operational challenges due to funding delays.
“This release will ensure seamless conduct of school activities and reaffirm the government’s commitment to learners’ right to free and compulsory basic education as enshrined in Article 53(1)(b) of the Constitution,” stated Ogamba.
The Ministry further issued a stern warning to school heads against misappropriating the funds or imposing unauthorised levies on learners, urging school administrators to handle the funds responsibly and avoid burdening parents with illegal charges.
“School heads and principals are directed to ensure prudent use of these public resources entrusted to their care for the benefit of learners, and to desist from imposing any unauthorised levies. As a Ministry, we will deal firmly with any verified cases of misappropriation of resources and the imposition of unauthorised levies,” Ogamba said.
Principals who spoke to the Nation said that learning programmes have been affected, as well as co-curricular activities.
According to the Kenya Secondary Schools Heads Association (KESSHA) national chair, Willie Kuria, the government owes schools a balance of Sh2,300 per student from Term one, when schools are supposed to receive 50 percent of the annual capitation.
The annual capitation per learner is Sh22,244. The money is only intended for tuition expenses and does not cover meals and other needs.
"There was a pending balance from last term, Sh2,300 per student. We are expecting the money as well. We’ve been waiting for the government to clear the arrears. We thought the funds would be disbursed before schools reopened to help us jumpstart operations, but nothing has come through,” said Kuria.
Meanwhile, thousands of students seeking bursaries from county governments remain in limbo. As schools continue to suffer, billions of shillings meant for education remain locked in a standoff involving county governments and the Controller of Budget.
According to sources privy to the ongoing stalemate, despite the availability of funds, several counties are unable to disburse money to schools due to a protracted dispute with the Controller of Budget (CoB).
For example, Mandera County has Sh600 million meant for school programmes, while Nakuru County has Sh270 million and Murang’a County has Sh70 million in limbo — all funds that were budgeted for school use under the County Integrated Project Agreements (IPAs).
Despite Murang’a and Mandera counties having already signed their IPAs, the CoB has yet to release the funds. Some county officials accuse the office of being vindictive, stalling progress for reasons that remain unclear.
In Nakuru, a court case has also contributed to the delays, compounding the frustration of school heads and education stakeholders who are now unable to pay staff or sustain daily operations.
Katiba Institute filed a case jointly with activist Laban Omusundi at the Nakuru High Court, challenging how counties manage public finances related to education support programmes — a move that has stalled bursary disbursements and left thousands of students in limbo.
The constitutional petition, filed on February 3, 2025, questions the legality of bursary allocations by counties and has triggered court orders that halted the release of funds.
However, on May 21, 2025, the High Court declined to issue an interim order prohibiting Parliament from forwarding the Constitution of Kenya (Amendment) Bill, 2025 -which is seeking to anchor NG-CDF in the law -to the President for assent pending determination of a petition filed by civil society groups.
