Schools reopen under debt, funding pressure as shortest, final-term exams loom

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As schools reopen on Monday August 24, learners face a nine-week final term packed with national assessments and examinations, while school heads return to classrooms with a funding shortfall to contend with.

The Ministry of Education, in a circular dated July 28, 2026, released Sh3, 367.60 per learner for the third term, below the Sh4, 449 per learner that schools are expected to receive, adding to funding gaps accumulated since the beginning of the year.

The squeeze comes at a critical point in the academic calendar, with schools expected to complete the syllabus, prepare candidates for national examinations and meet assessment deadlines before the year ends.

According to the ministry, schools should receive Sh11, 122 per learner in Term One, Sh6, 673 in Term Two and Sh4, 449 in Term Three, translating to an annual allocation of Sh22, 244 per learner.

But Kenya Secondary School Heads Association (Kessha) chairperson Willy Kuria said schools have received less than these amounts during the year.

He revealed that in Term One, schools received Sh6, 577 per learner, while Sh1, 375 was retained by the Ministry of Education, bringing the total allocation to Sh7, 952 per learner against the expected Sh11, 122. This left a shortfall of Sh3, 170 per learner.

In Term Two, Mr Kuria said, schools received Sh4, 852 per learner, while Sh285 was retained by the ministry, bringing the total allocation to Sh5, 137 per learner against the expected Sh6, 673.

This left a further deficit of Sh1, 535 per learner.

The third-term release leaves another Sh1, 081.40 per learner between the Sh3, 367.60 released and the Sh4, 449 expected, Mr Kuria added.

Based on the figures provided by Kessha and the ministry's stated allocations, schools have received about Sh16, 456.60 per learner against the expected Sh22, 244 for the year, leaving a cumulative shortfall of Sh5, 787.40 per learner. This, the association boss said, means schools have received about 74 per cent of the annual allocation.

“Schools are in debt. Sometimes we call the parents and talk to them. We tell them about our deficit, and some of them agree to supplement what the school has. They give us some money, but when they do, the Ministry calls it extra fees. Unfortunately, that is how it is classified. But there is no school that can survive on this amount of money,” said Mr Kuria.

The funding pressure is not new, with school heads arguing that the capitation formula has failed to keep pace with the rising cost of running schools and an increasingly demanding curriculum.

Casper Maina, chairman of C1 schools (formerly national schools), said the cost of providing education had changed significantly since the current capitation system was introduced.

“Capitation is the elephant in the room. It is not enough. This thing was put in place in 2014, 12 years ago. Too much has changed over that time. Why are we not reviewing this? We should be realistic and tell people times have changed,” he said.

The pressure is particularly significant as schools deal with the expanded Competency Based Education curriculum, which has introduced specialised subjects requiring additional equipment, materials and teachers with specific skills.

“Given the nature of the subjects that we offer, our curriculum is very broad, especially with the coming in of CBE. It is extremely broad. You offer subjects like aviation. You have mechanics, metalwork and other activities,” said Mr Maina.

For school heads, the challenge is not only finding money to support the curriculum but also managing schools that are already carrying debts from previous terms and years.

The funding shortfall has left many schools struggling with mounting debts, as delayed and inadequate disbursements force them to rely on suppliers for goods and services on credit. “We are surviving on credit. We negotiate with suppliers and ask them to give us more time, but you cannot keep borrowing indefinitely. We are already carrying debts from previous terms and years, and now we are entering the final term with the same problem. The government does not seem to understand that even if capitation comes early, schools will remain in trouble if they are still carrying arrears from previous years,” a principal in Nairobi said.

The funding squeeze comes at a particularly demanding stage of the school calendar, with candidates expected to intensify revision and prepare for national examinations.

Schools must also provide materials for practical examinations, which require chemicals, laboratory equipment and other specialised resources.

“At this time of the year, our biggest concern should be preparing candidates, not wondering where the money for basic examination materials will come from. Some of these items are expensive, and the amount coming to schools is simply not enough to cover the costs,” the principal said.

For schools already struggling with debt, securing supplies on credit is becoming harder.

“Most of our suppliers are now asking us to clear previous bills before they can deliver anything else. We understand them because they also have businesses to run, but the school has no money to pay them. We are caught in between because we still need food, learning materials and examination supplies,” another Nairobi principal said.

The 2026 Kenya Certificate of Secondary Education (KCSE) examinations will run from October 19 to November 20, with oral and practical papers scheduled before the main written papers. The first theory papers are scheduled for November 2, with 1.04 million candidates expected to sit the examination.

For Grade 9 learners, the Kenya Junior School Education Assessment (KJSEA) will be administered from October 26 to October 30, with 1.19 million candidates expected to sit the assessment.

The Kenya Primary School Education Assessment (KPSEA) will run from October 26 to October 28, with 1.30 million learners registered for the assessment.

Reporting originally appeared via Nation Africa. Read the full source for additional context.