Feature: Kenya’s Education in Crisis: Billions Lost to Underfunding and Ghost Schools.

Kenya’s public education system is on the brink of collapse, suffocated by chronic underfunding, systemic mismanagement, and alarming cases of financial malpractice. A damning special audit report by Auditor General Nancy Gathungu has laid bare the extent of the crisis, revealing how schools across the country are struggling under the weight of unpaid debts while millions of shillings in public funds are being funneled to non-existent institutions.

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Between the 2021 and 2024 financial years, the government underfunded public schools by a staggering Ksh.117 billion, leaving headteachers scrambling to keep their institutions afloat. Secondary schools bore the brunt of the shortfall, receiving Ksh.71 billion less than required, while junior secondary and primary schools faced deficits of Ksh.39.9 billion and Ksh.14 billion, respectively. This persistent underfunding has forced schools to either abandon essential programs or accumulate massive pending bills, further crippling their operations.

At the heart of the funding crisis lies the flawed National Education Management Information System (NEMIS), which was designed to ensure fair and transparent allocation of resources. Instead, it has become a source of glaring disparities. Shockingly, 354 secondary schools were overfunded by Ksh.3.5 billion, while 99 junior secondary schools received an excess of Ksh.30.8 billion funds that could have rescued struggling institutions. Meanwhile, many schools, particularly in marginalized regions, were left with far less than they needed due to inaccurate enrollment data. Funyula MP Oundo Mudenyo condemned the system, calling it a tool of “historical injustice” that perpetuates inequality in education.

Even more disturbing is the revelation that millions of shillings in capitation funds were disbursed to ghost schools. The audit uncovered 14 schools that do not exist yet received a combined Ksh.16.6 billion. Another six non-operational schools were still being funded, pocketing Ksh.889,348, while 13 others with mismatched names in NEMIS got Ksh.11 million. Lawmakers were left fuming, with Mudenyo demanding to know, “Who authorized the transfer of funds to these ghost schools?”

The Public Accounts Committee, chaired by Tindi Mwale, has vowed to take swift action, summoning the Ministry of Education to account for these discrepancies. “We will demand answers from the accounting officer,” Mwale declared, signaling a potential showdown over the mismanagement of education funds.

The implications of these findings are dire. Underfunded schools are struggling with dilapidated infrastructure, unpaid suppliers, and stalled projects, directly impacting the quality of education for millions of children. At the same time, the misallocation of funds including those sent to ghost schools points to deep-seated corruption within the system.

To salvage Kenya’s education sector, urgent measures are needed. A comprehensive audit of all schools must be conducted to weed out ghost institutions and verify true enrollment numbers. The NEMIS system must be overhauled to ensure accurate, real-time data that prevents both overfunding and underfunding. Most importantly, those responsible for siphoning funds to non-existent schools must be prosecuted to restore public trust.

Kenya’s education system stands at a crossroads. The Auditor General’s report is more than just an exposé—it is a call to action. Without immediate intervention, the future of millions of students will remain in jeopardy, and the dream of equitable, quality education will continue to slip further away. The time for accountability is now.

Source: Auditor General Report, Citizen Digital,

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