Education Officials Complain Sh24 Billion Funding Puzzle for Public Schools
The financial crisis in public schools in Kenya is set to worsen, despite the government’s release of Sh24 billion in capitation money.
The funds, which were released on Thursday, are proving to be inadequate as schools have yet to receive money for the first and second terms of the year.
As schools have yet to receive funds for the first and second terms, it is now apparent that the funds released may not be sufficient.
The last disbursement to institutions occurred in January, three months ago. Principals contend that the released funds represent only 20% of the 2022 third-term capitation.
The principals argue that no funds have been allocated for the first and second terms of this year.
The lack of clarity regarding the percentage of per-pupil capitation funding that has been disclosed contributes to the financial crisis in public schools.
In addition, it was revealed that the Sh24 billion issued yesterday was Sh4 billion less than what Education Cabinet Secretary Ezekiel Machogu had assured MPs would be released to schools earlier this week.
Machogu, who appeared in Parliament on Wednesday to address questions during plenary session, stated that schools would be allocated Sh28 billion.
However, according to a government dispatch, only Sh24 billion was released, with a notice that the funds would be deposited between Thursday and Monday of the following week.
According to the distribution schedule, secondary schools would receive Sh15,6 billion for Free Day Secondary Schools (FDSE).
Additional Sh4.6 billion was allocated to support Free Primary Education (FPE), and at least Sh3.8 billion will be allocated to capitation for Junior Secondary Schools.
Despite the fact that school administrators viewed the funds as an enormous relief following a lengthy wait for the money, it turned out that the effort was too little, too late.
The money was issued yesterday, four weeks after the second term of school began. It also occurs after the final payment to schools for 2022 debts was made in January.
Kahi Indimuli, chairman of the Kenya Secondary Schools Heads Association (KESSHA), and Johnson Nzioka, chairman of the Kenya Primary School Heads Association (KEPSHA), stated that school administrators are currently under duress.
“I am aware of schools that have not been able to pay workers’ salaries since the last term, around February,” said Indimuli, who is also principal of Machakos School.
According to him, schools are now at the discretion of their suppliers and risk being sued over their enormous debts.
Nzioka stated that the government should not claim to have funded schools without providing specifics and a funding formula.
“For now I can say the government has not given us money. I do not even know what percentage this money is. Given the number of learners we have of 12 million in primary schools, the money is too little. This will put us in more confusion,” Nzioka said.
According to school administrators who also spoke with The Standard, a substantial portion of the Sh24 billion will be allocated to debt service rather than operational expenses for the year.
Indimuli stated that the last disbursement received by schools was on January 26, 2023, and he expected the government to provide direction on how schools will reduce the anticipated balance.
He stated that the few late-disbursed funds will still have an impact on school operations.
According to Indimuli, the money has been disbursed without a circular detailing how the funds should be utilized, causing further confusion.
‘‘We don’t know the percentage released per child and the vote they have been allocated. The biggest challenge will be money for operations is not enough. Schools will continue having problems,’’ Indimuli said.
In an ideal scenario, the government would release capitation funds in the proportions of 50:30:20 for the first, second, and third terms, correspondingly.
However, this form appears to have been disregarded, with funds being sent to institutions at random.
Nzioka observed that the government is essentially just offsetting the debt carried forward from the previous year.
Nzioka further stated that during the previous term, the schools only received a mere 20 percent of the required funds to address the financial obligations from the previous year.
They were expecting an additional 50 percent to cover the outstanding amount, but the allocated funds do not align with the owed sum from the preceding term, Nzioka emphasized.
Nzioka added that despite the government’s promise to provide the Junior Secondary with Sh9.6 billion, only Sh6 billion has been allocated to the new institution.
He added that they were assured that out of the allocated budget of Sh15,050 for Junior Secondary Schools (JSS), a sum of Sh4,000 would be dedicated to constructing laboratories.
However, in the previous term, they only received Sh4,078 for other purposes. They had anticipated more substantial funding that would align with the pressing needs of the schools.
According to Indimuli and Johnson Nzioka, the majority of institutions incurred significant debts during the previous academic year.
In the four weeks since schools opened, they claim that more debts have accrued due to delayed financing.
Indimuli expressed that when schools receive funding below the anticipated ratio, it significantly impacts their operations.
He expressed uncertainty about whether the remaining balance would be considered in the next financial year or if it would be treated as a bad debt.
Indimuli placed the blame on the government for withholding funds that are intended for schools, highlighting that schools end up losing out on this money once their activities conclude.
He further emphasized that once school activities are completed, the government tends to forget about the financial support needed.
Indimuli criticized the government for not providing retroactive funding to schools. He suggested reverting to the previous funding model, where funds were allocated on a termly basis, rather than following a quarterly approach like other government departments.
Peter Sitienei, chairman of Special Needs Education, criticized the government for ignoring the category, stating that it has been neglected for a long time.
“I urge the government to identify SNE and solve our problems through the Directorate of Special Needs. We expect grants for two terms which they have not distributed to us,” Sitienei said.
He noted that teaching employees and subordinates have not received their salaries for more than seven months.
Education Officials Complain Sh24 Billion Funding Puzzle for Public Schools
