Coast principals warned over rising debts, poor financial records as audits reveal disturbing gaps

The Coast Region Auditor of Schools, Jackline Makena, has cautioned secondary school principals against accumulating huge and unjustified debts, warning that the trend is exposing institutions to financial risks.

Makena, who was speaking during the Coast Region School Heads Retreat at Pride Inn Hotel in Mombasa County, said audits conducted in several schools had revealed worrying gaps, including unexplained liabilities and undocumented expenditures.

She raised concern that some school administrators continue to enter into financial commitments without proper records, making it difficult for auditors to verify the legitimacy of debts.

“When we pick debts, let’s ensure they are genuine and properly documented, since most of you sometimes are unable to justify,” she said.

Makena urged school heads to tighten their financial management systems, noting that many institutions were failing to prepare credible budgets, a leading cause of runaway debts.

She advised the principals to plan realistically and operate strictly within their financial limits.

Makena emphasized that proper budgeting not only ensures accountability, but also prevents unnecessary pressure on parents and school communities who are often forced to shoulder the burden when debts soar.

The auditor further reminded the principals to adhere to legal procurement procedures, warning that shortcuts in purchasing goods and services often result in audit queries and conflicts with oversight agencies.

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Makena said strict compliance with the Public Finance Management (PFM) Act and Ministry of Education guidelines would help schools avoid audit pitfalls and enhance transparency.

She also challenged school boards of management to play their oversight role diligently by questioning irregular expenditures and ensuring financial discipline in their institutions.

“With the ongoing conversation around enhancing education funding, schools must demonstrate responsibility in how they manage public resources to justify increased support from the government.” Makena said.

Regional Education Director Anne Kiilu also echoed the auditor’s sentiments urging the school heads to embrace creativity in managing their institutions while remaining within their operational limits.

She noted that although schools face myriad challenges, prudent planning and innovative approaches can help bridge resource gaps without plunging institutions into financial distress.

Kiilu reminded the principals that once they receive their budgets, they must strictly follow the Ministry of Education guidelines on acknowledgment, planning, and expenditure.

She stressed that no project should begin without proper approval from the relevant authorities, warning that bypassing procedures often results in audit queries and stalled developments.

She further emphasized that value for money should be at the centre of every financial decision made by school administrators.

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According to her, every shilling spent must have a clear justification and tangible benefit to learners.

Kiilu also underscored the importance of accurate record-keeping and reporting in the management of school affairs.

“Data is key to everything. Always give the correct data whenever it is asked,” she said.

She added that reliable data enables the government to make informed decisions on resource allocation, staffing, and infrastructural support, ultimately improving education outcomes across the region.

Taita Taveta County Education Director Khalif Hirey also affirmed that many schools in the region are grappling with significant debts arising from both unpaid student fees and pending bills owed to suppliers.

Hirey said some of these liabilities are created by political interference, where leaders make promises to settle school fees for certain learners but fail to honor their commitments.

“I understand sometimes we are disadvantaged by the political class who beg you not to send away children but end up not fulfilling their promises,” he said.

He noted that while school heads are often caught between enforcing school fees policies and accommodating vulnerable learners, it is important for them to strike a balance that does not push institutions into financial crises.

Hirey urged principals to avoid accumulating debts beyond what they can manage, warning that unchecked liabilities can cripple school operations and expose administrators to audit queries

He added that ballooning debts also create challenges during leadership transitions, as incoming principals are often left confused and overwhelmed by arrears inherited from their predecessors.

Hirey called for honesty, transparency, and stronger financial discipline among school leaders to ensure institutions remain stable and accountable.

By Shaban Omar