The Ministry of Education has introduced strict new guidelines to ensure capitation funds only reach genuine schools and learners, following revelations of billions lost to ghost institutions.
The move comes after a damning Auditor General report showed that 33 non-existent schools had received billions of shillings in capitation over the last four years, exposing glaring loopholes in the system.
Education Cabinet Secretary Julius Ogamba said the State Department for Basic Education is undertaking a thorough data-cleaning exercise to eliminate fraudulent records. “Any anomalies detected will be investigated and appropriate legal action taken,” he warned.
Under the new rules, every school must be validated by confirming registration with county education boards and ensuring a substantive principal is posted by the Teachers Service Commission (TSC) before funds are disbursed.
New schools seeking capitation will also be required to submit multiple documents, including the FDSE application form, a valid registration certificate, minutes of a Board of Management meeting, TSC appointment letter for the principal, bank details with authorized signatories, and official confirmation from the sub-county director of education with KNEC and Unique Identification Codes (UIC).
Ogamba revealed that so far, over 29,000 out of 32,000 schools have been verified, with the ministry already identifying more than 50,000 ghost learners through cross-checking enrolment against the National Education Management Information System (NEMIS).
“We are determined to weed out ghost students and schools. Before capitation funds are released, each school must be properly registered and have a substantive principal,” Ogamba said, adding that accurate data would help the government fully implement the Ksh22,244 per learner secondary school capitation.
The ministry has now introduced additional learner identifiers, including assessment and index numbers, to work alongside the Unique Personal Identifier (UPI) and avoid duplication. Schools will also be required to submit detailed enrolment data, including learners’ names, gender, date of birth, birth entry number and disability status.
School heads have been urged to cooperate with the exercise, which Ogamba said will “close gaps, improve planning and ensure all legitimate learners benefit from government funding.”
