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Big Blow to Parents as Government Announces Major Shift in Student Funding Policy

Journalist BenedictBy Journalist BenedictJuly 24, 2025No Comments3 Mins Read
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Treasury CS John Mbadi Declares: Kenya Can No Longer Afford Free Education

Kenyan parents are facing tough times ahead after Treasury Cabinet Secretary John Mbadi announced that the government can no longer support fully free primary and secondary education.

While speaking before the National Assembly’s Education Committee on July 24, CS Mbadi explained that the free education model has become unsustainable. He blamed the rising number of students enrolling in schools and tight government finances as the key reasons for the shift.

“The number of learners has grown significantly, yet the available resources have not increased at the same pace,” Mbadi said. “This means continuing with fully free basic education is no longer viable.”

Capitation Grant Slashed

The Treasury has now revised the capitation — the amount the government pays per student — for secondary school learners. It will drop from Ksh22,244 to Ksh16,900 per student annually.

Currently, the government provides the following per-student funding:

  • Primary school: Ksh1,420
  • Junior secondary: Ksh15,042
  • Senior secondary: Ksh22,244

Mbadi noted that due to limited financial capacity and shifting priorities in the education sector, these rates may not be updated in the near future. However, if national revenue collections improve, the government may consider increasing the allocations.

“We are facing fiscal constraints, and unless revenue performance improves, it will be hard to enhance funding levels,” Mbadi added.

Students Might Start Paying for National Exams

In another major change, CS Mbadi revealed that the government is thinking about introducing registration fees for national examinations, which have been free in the past. This means students and parents may soon need to pay to register for crucial exams like KCPE and KCSE.

Education CS Supports the Move

Education Cabinet Secretary Julius Ogamba supported Mbadi’s remarks, echoing that rising student enrollment has put a serious strain on the ministry’s budget. According to Ogamba, the number of students has been increasing every year, yet the funds allocated to the ministry have not been adjusted accordingly.

“For the last four or five years, the ministry’s budget has remained static, even though the number of learners has kept growing,” he said.

To manage the limited capitation funds more effectively, Ogamba explained that the ministry is now disbursing the money in stages — 50% in Term 1, 30% in Term 2, and 20% in Term 3 — to help schools better plan their expenditures throughout the year.

Education Sector Still Receives Major Budget Share

Despite the funding cuts, the government still considers education a top national priority. In the 2025/2026 national budget read in June, CS Mbadi allocated Ksh702.7 billion to the education sector out of the total Ksh4.29 trillion budget. This means education is getting about 28% of the entire national budget.

Mbadi emphasized that investing in education is key to economic development.

“Education drives innovation, builds human capital, and boosts national productivity. That’s why we continue to invest in it,” he stated.

How the Education Budget Was Shared:

  • Free primary education: Ksh7 billion
  • Free day secondary schools: Ksh51.9 billion
  • Junior secondary schools: Ksh28.9 billion
  • TVET colleges: Ksh4 billion
  • National examinations: Ksh5.9 billion
  • School feeding programme: Ksh3 billion

While this funding still represents a significant investment, the shift away from fully free education means that parents may soon need to shoulder more costs related to their children’s schooling. The government insists the changes are necessary to ensure the sustainability of education in the face of growing demands and limited resources.

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