A recent audit has raised alarm over the Jomo Kenyatta Foundation’s (JKF) financial and operational health, warning that the state agency’s instability could jeopardize its scholarship programmes, including support for more than 14,000 learners under the World Bank‑funded Elimu Scholarship Programme.
The Auditor General’s report shows the foundation sliding toward insolvency, with accumulated losses hitting Ksh934 million by June 2025. While the annual net loss narrowed to Ksh167 million from Ksh303 million the previous year, Auditor General Nancy Gathungu cautioned that the improvement is insufficient to reverse the erosion of JKF’s net worth or restore its ability to meet obligations.
JKF’s working capital position has deteriorated sharply. Current liabilities stand at Ksh779 million against current assets of Ksh207 million, leaving a negative working capital of Ksh571.6 million.
The audit further warns that this imbalance undermines day‑to‑day operations and heightens the risk of default, litigation, and further financial strain.
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Management attributes the downturn to the collapse of its publishing business, once the backbone of JKF’s revenues. Policy changes that opened the textbook market to private publishers, coupled with the transition to the Competency‑Based Curriculum, left JKF with obsolete stock and minimal government orders.
According to the report, publishing income fell by 79 per cent, from Ksh117 million to Ksh25 million, forcing the foundation to compete in a limited private schools market. “Lack of any government orders meant that the public schools segment was largely locked out for Jomo Kenyatta Foundation,” chairperson Rose Waruhiu noted in the annual report.
A presidential task force has proposed shifting administration of scholarships to a new Kenya Basic Education Bursary and Scholarship Council, potentially removing JKF from a core role.
At the same time, JKF appears on a list of state agencies earmarked for dissolution under ongoing parastatal reforms, deepening uncertainty over its future.
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The audit found Ksh99.4 million in unremitted statutory deductions, including PAYE, NSSF, NHIF, and pension contributions thus exposing JKF to penalties, interest, and legal action. Outstanding bills totaled KSh737 million at the time of review, with KSh548 million overdue for more than a year, a backlog the Auditor General warned could trigger litigation and additional losses.
Further compliance and control weaknesses were flagged: missed quarterly stock counts casting doubt on Ksh31 million in reported inventory; failure to meet employment requirements for persons with disabilities; instances of staff receiving net pay below legal thresholds; unexplained adjustments to payables; errors in cash flow statements; and misstatements in grant disclosures. Collectively, these issues point to gaps in governance, internal controls, and financial reporting.
By Masaki Enock
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