ECONOMY

Treasury Moves to Fix Capitation Gaps with Ksh23B Education Funding

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Treasury CS John Mbadi
Treasury CS John Mbadi. [Photo/@KeTreasury/X]
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The National Treasury is set to release billions of shillings to the education sector this week in a move aimed at easing pressure on schools and supporting learners as national examinations approach.

Treasury Cabinet Secretary John Mbadi has confirmed that Ksh 23 billion will be disbursed to the Ministry of Education on Tuesday, August 26, 2025.

The funds are expected to stabilise school operations, improve learning conditions and ensure smooth preparation and administration of national exams.

Speaking during the launch of the FY 2026/27 and the Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC), Mbadi stated that the bulk of the funds, Ksh17 billion, will be allocated towards school capitation for both primary and secondary schools.

The capitation funds are meant to help schools meet day-to-day operational costs, including learning materials, utilities and co-curricular activities.

An additional Ksh 5.9 billion has been allocated to support the administration of national examinations, covering logistics, supervision, and other critical costs associated with the exam period.

Mbadi also reassured university and college students that funding for the Higher Education Loans Board (HELB) remains a top priority for the government. He said the Treasury is working to mobilise resources to ensure HELB funds are released in time for the September intake.

“We will also look for money for HELB this week so that our children can go to school,” Mbadi said, signalling that students should expect relief before the next academic cycle begins.

The Treasury CS admitted that school capitation has been underfunded for several years, putting strain on learning institutions across the country. He said the government is now reviewing the situation to address long-standing gaps in education financing.

Mbadi revealed that he has held consultations with Education Cabinet Secretary Julius Ogamba and Basic Education Principal Secretary Julius Bitok to find solutions to the funding shortfall.

He said the discussions followed direct instructions from President William Ruto to prioritise education funding.

“We have not been giving enough money for capitation, and we are now reviewing the situation,” Mbadi said, noting that the review is aimed at ensuring schools receive adequate and timely support.

The Treasury’s announcement comes amid public debate over school capitation levels. In late July, Education CS Julius Ogamba dismissed claims that the government had reduced funding for learners.

On July 28, Ogamba clarified that there had been no decision to cut capitation from KSh22,000 to KSh16,000 per learner, terming the reports misleading.

“Nobody has ever said that we are reducing the money from Ksh 22,000 to Ksh 16,000. Even my colleague never said anything close to that,” Ogamba said at the time.

He urged political leaders and stakeholders to focus on long-term and sustainable solutions to strengthen the education sector instead of spreading misinformation that could cause panic among parents and school administrators.

“The education sector deserves and will continue to receive the support it requires,” Ogamba said.

The latest funding commitment by the Treasury is expected to bring some relief to schools that have struggled with delayed capitation and rising operational costs, while also boosting confidence among learners and parents ahead of the examination season.

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