Parents and school administrators have received a major relief after Treasury Cabinet Secretary John Mbadi confirmed that the government will release funds meant for school capitation starting tomorrow, Tuesday, August 26. The move is expected to avert possible disruptions as schools prepare to reopen.
Speaking on Monday, August 25, during the official launch of the FY 2026/27 and Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC), Mbadi revealed that the Treasury will release Ksh23 billion to schools across the country, alongside additional allocations to the Higher Education Loans Board (HELB).
The directive, he explained, follows instructions from President William Ruto to prioritize the education sector.
The CS acknowledged that funding challenges have long burdened the education system, especially on the issue of capitation. He noted that the government has been grappling with inadequate allocations for over seven years but assured that new measures will be put in place to close the gap.
“We have not been releasing adequate money for capitation, and this has gone on for seven years. I have no apologies to make for admitting that. However, after consultations with the Principal Secretaries for Education and the CS, under the President’s directive, we have reviewed the situation and identified the existing gap,” Mbadi said.
He further explained that the government will intensify efforts to mobilize more resources for education, not only to support schools but also to strengthen HELB funding. According to Mbadi, Ksh17 billion will be released tomorrow, alongside Ksh5.9 billion meant for examinations, while HELB will also receive more support to cushion students in higher learning institutions.
Longstanding Capitation Problem
For years, school heads have raised concerns over delayed disbursement of capitation funds. Under the current arrangement, the government pays Ksh22,144 per secondary school student annually, broken into three installments: Ksh11,122 for the first term, Ksh6,673 for the second term, and Ksh4,439 for the third term.
However, the delays in disbursements have left many schools in financial distress. On Tuesday, July 15, the Kenya Secondary School Heads Association (KESSHA) warned that the government still owed schools Ksh7.6 billion for the first term and Ksh10.6 billion for the second term.
In a statement, KESSHA noted that the situation had forced school principals into desperate measures to keep institutions running.
“Many school heads are forced to play hide and seek with suppliers because of lack of funds. In some cases, qualified Board of Management (BoM) teachers have been laid off, which compromises the quality of education in our institutions,” the association lamented.
HELB Disbursements
The development comes just days after HELB announced the disbursement of Ksh9.6 billion to more than 300,000 students in tertiary institutions across the country.
According to HELB, the amount included Ksh5.76 billion for tuition fees and Ksh3.7 billion to cater for student living expenses, benefitting a total of 309,178 applicants.
In its statement on Tuesday, August 19, the board urged students to log into their online portals to confirm that the funds had been credited to their accounts.
“Students are encouraged to check their HELB portals to confirm receipt of the funds and to view detailed information about their individual loan accounts,” the board stated.
A Step Toward Stability
Education stakeholders have welcomed the Treasury’s move, saying the release of funds will ease the financial strain on schools as reopening approaches.
With both schools and universities set to benefit, parents and learners alike hope the government will maintain consistency in disbursing capitation and student loans to avoid the cycle of delays that has plagued the sector for years.
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