The National Treasury is set to release Ksh23 billion in education funds on Tuesday, August 26, offering a major reprieve to parents and school administrators ahead of reopening this week.
Treasury Cabinet Secretary John Mbadi made the announcement earlier today during the launch of the FY 2026/27 and Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC).
Mbadi confirmed that the funds, earmarked for school capitation, will be disbursed to the Ministry of Education following a directive from President William Ruto.
The allocation includes Ksh17 billion for general capitation, Ksh5.9 billion for examinations, and additional support for the Higher Education Loans Board (HELB).
“We’ve identified the gap in education funding, and we’re acting on it. For seven years, capitation has been underfunded, and I make no apologies for acknowledging that,” Mbadi said. “We’ve sat down with education officials under the President’s instruction, and we’re now moving to close that gap.”
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The CS also pledged to intensify efforts to mobilise more resources for education, noting that capitation delays have long strained school operations. Mbadi emphasized the need to strengthen HELB’s capacity to support students in tertiary institutions, adding that more funds will be allocated to the loans board in the coming months.
Kenya’s capitation model currently allocates Ksh22,144 per secondary school student annually, disbursed in three batches: Ksh11,122 in Term One, Ksh6,673 in Term Two, and Ksh4,439 in Term Three. However, delays in releasing these funds have left many schools struggling to maintain operations.
In a statement issued on July 15, the Kenya Secondary School Heads Association (KESSHA) raised concerns over the government’s failure to release capitation on time. According to KESSHA, schools are still owed Ksh7.6 billion for Term One and Ksh10.6 billion for Term Two, forcing headteachers to delay payments to suppliers and lay off Board of Management (BoM) teachers.
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“School heads are playing hide and seek with suppliers due to lack of funds. The quality of education is suffering,” KESSHA warned.
The Treasury’s announcement comes just days after HELB disbursed Ksh9.6 billion to over 309,000 students in universities and colleges. Of that amount, Ksh5.76 billion covered tuition fees, while Ksh3.7 billion was allocated for student upkeep.
The timely release of capitation funds is expected to ease pressure on school management and ensure uninterrupted learning across the country.
By Masaki Enock
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