NAIROBI — The Office of the Auditor General has revealed that Ksh16.68 million was paid out to 14 non-existent schools, exposing glaring weaknesses in Kenya’s education funding system.
Appearing before the National Assembly Public Accounts Committee (PAC) on Monday, Director of Audit Justus Okumu confirmed that county education directors denied knowledge of the listed schools. A subsequent inspection found no physical infrastructure at the sites, despite the schools receiving capitation funds.
“These institutions exist only through bank accounts,” Okumu stated. “There is no trace of classrooms, teachers, or students.”
The audit also found that six schools, which had already shut down operations, received a combined Ksh889,348 in capitation funds during the review period.
The revelations come amid a nationwide funding crisis. The Auditor General disclosed a shortfall of Ksh117 billion in the current school capitation model, which affects public primary schools, junior secondary institutions, and special needs centers. Secondary schools are reportedly the hardest hit.
Okumu criticized the current allocation system for being inequitable and inconsistent with student needs. The report also highlighted irregular withdrawals and fund transfers from tuition accounts, violating government guidelines.
The National Education Management Information System (NEMIS) came under sharp scrutiny during the session. The audit flagged significant flaws in data accuracy, transparency, and system integrity. According to the findings, discrepancies in school records, enrollment figures, and infrastructure data point to weak validation processes.
“These lapses in NEMIS create space for fraud, misreporting, and distortion of funding,” Okumu warned. “They also pose risks including data breaches, unauthorized access, and manipulation of critical education information.”
MPs on the PAC called for an immediate review of NEMIS, saying its current flaws have denied many students across Kenya access to rightful funding and support.
“This is not just a systems failure. It’s a failure that affects real learners every day,” one committee member said.
The audit paints a dire picture of mismanagement and systemic gaps in Kenya’s public education funding, at a time when schools continue to struggle with delays in capitation disbursements and soaring operational costs.
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