Kenya’s schools have reopened for the crucial third term under mounting financial pressure, with institutions facing a Ksh5,787.40 funding shortfall per learner as they prepare students for national examinations.
The nine-week term will be particularly demanding for schools, which must complete the curriculum, administer assessments and prepare candidates for the 2026 KCSE examinations scheduled for October 19 to November 20.
Yet schools are entering the final stretch of the academic year with only about 74 per cent of their expected annual capitation, forcing many institutions to depend on suppliers and parents to keep operations running.
Schools Receive Less Than Expected Capitation
The Ministry of Education released Ksh3,367.60 per learner for Term Three, significantly below the Ksh4,449 that schools are expected to receive under the government’s capitation formula.
The annual formula provides for Ksh11,122 per learner in Term One, Ksh6,673 in Term Two and Ksh4,449 in Term Three.
Combined, this amounts to Ksh22,244 per learner annually.
But schools have not received the full allocation.
According to Kenya Secondary School Heads Association chairperson Willy Kuria, institutions received Ksh6,577 per learner in Term One, with another Ksh1,375 retained by the ministry.
This brought the total to Ksh7,952 against the expected Ksh11,122, leaving a deficit of Ksh3,170 per learner.
In Term Two, schools received Ksh4,852, while Ksh285 was retained, bringing the total to Ksh5,137 against the expected Ksh6,673.
That represented another Ksh1,535 shortfall per learner.
The latest Term Three release adds a further Ksh1,081.40 gap.
Cumulative Shortfall Hits Ksh5,787 Per Learner
By the beginning of the third term, schools had received approximately Ksh16,456.60 per learner against the expected Ksh22,244 for the full year.
That leaves a cumulative deficit of Ksh5,787.40 per learner. The gap represents roughly 26 percent of the annual allocation schools were supposed to receive.
For institutions with hundreds or thousands of students, the financial implications are substantial.
A school with 1,000 learners, for example, would face a funding gap of more than Ksh5.7 million based on the reported per-learner deficit.
That money is needed at precisely the time schools face some of their most demanding expenses.
Schools Turning to Parents and Suppliers
The funding shortage has forced school administrators to search for alternative ways of keeping their institutions operational.
Some schools have accumulated debts with suppliers who provide food, learning materials and other essential services on credit.
But even suppliers are becoming increasingly reluctant to extend additional credit to institutions carrying significant outstanding balances.
Parents have also been approached to supplement school finances.
Kuria said school heads sometimes explain the funding situation to parents, with some families voluntarily contributing money to help schools meet their obligations.
However, such contributions can subsequently be classified as additional fees, creating another layer of tension between schools, parents and the government.
School heads argue that institutions simply cannot operate effectively on the amount currently being disbursed.
KCSE Candidates Face Pressure
The funding crisis comes as schools prepare for one of the most important periods of the academic year.
Candidates sitting the 2026 KCSE examinations are expected to intensify revision while schools complete the remaining curriculum and prepare learners for national assessments.
The examinations are scheduled to run from October 19 to November 20.
Schools must also provide candidates with the resources required for practical examinations.
For science students, that can include laboratory chemicals, equipment and other specialised materials.
The financial pressure therefore extends beyond ordinary school operations.
Institutions must find money to support examination preparation while simultaneously clearing debts and meeting routine expenses.
CBC Adds to Financial Pressure
School administrators say the problem has been worsened by the changing demands of Kenya’s education system.
The expanded Competency-Based Education curriculum has introduced specialised subjects requiring additional learning materials, equipment and teachers with specific expertise.
These requirements come at a time when schools say government funding has failed to keep pace with the rising cost of education.
The result is a growing mismatch between what schools are expected to deliver and the resources available to them.
For school heads, the issue is therefore no longer simply about delayed payments.
They argue that the existing capitation formula itself may no longer adequately reflect the real cost of running modern schools.
Nine Weeks to Save the Academic Year
The third term gives schools only nine weeks to navigate the final stretch of the academic calendar.
Within that period, institutions must complete teaching, conduct assessments, prepare examination candidates and maintain normal operations despite significant financial constraints.
The pressure is particularly severe for schools already carrying debts from previous terms.
Without additional funding, administrators may have to continue negotiating with suppliers and appealing to parents for support.
The government, meanwhile, faces growing pressure to address the gap between its stated capitation formula and the actual money reaching schools.
For thousands of schools and millions of learners, the issue is ultimately about whether institutions can deliver the education promised by the government.
As schools reopen for the final term, the Ksh5,787 per-learner funding gap has turned capitation into a serious education crisis, with teachers, parents and candidates carrying the consequences.
