Nairobi, Kenya — Treasury Releases Ksh23 Billion to Ease Schools’ Funding Crisis

Kenyan parents breathed a sigh of relief on 25 August 2025 after Treasury Cabinet Secretary John Mbadi announced that Ksh23 billion in capitation funds will be released to public schools beginning today. The commitment comes amid mounting pressure from school heads and parents over persistent delays in government funding.

Speaking during the launch of the 2026/27 budget preparation process at the Kenyatta International Convention Centre, Mbadi also confirmed that billions will be allocated to the Higher Education Loans Board (HELB) to ensure timely disbursement of loans to university and college students.

Long-Delayed Relief for Schools

Mbadi conceded that successive delays in releasing capitation had created deep financial stress in public schools. For years, head teachers have been forced to defer payments to suppliers, reduce critical services, and in some cases send students home over unpaid levies. “We recognise that schools have suffered, and this government is committed to bridging the gap,” Mbadi said.

He outlined the breakdown of the disbursement: Ksh17 billion for capitation, Ksh5.9 billion for national examinations, and additional billions for HELB to cushion higher learning institutions. He urged the Ministries of Education and Treasury to align resources to ensure consistency going forward, adding that the Ruto administration intends to “give more money to the Higher Education Loans Board.”

Mounting Pressure from Stakeholders

The Kenya Secondary School Heads Association (KESSHA) had recently sounded the alarm, noting that schools are owed Ksh7.6 billion for first term operations and Ksh10.6 billion for second term. The association warned that the deficit had already forced some institutions to lay off teachers and cut back on essential programs.

The crisis has been mirrored in the higher education sector, where thousands of students rely on HELB for tuition and upkeep. Earlier this month, HELB released Ksh9.6 billion to support 309,178 students, but delays have left many still struggling to settle on-campus costs.

Families and Students Await Impact

Education stakeholders welcomed the Treasury’s intervention but cautioned that the timing of the release will be crucial. With schools set to reopen soon, parents already stretched by back-to-school expenses say the funds must reach institutions without further bureaucratic delays.

If honoured, Mbadi’s pledge could avert potential disruptions, restore confidence in the government’s education financing, and relieve pressure on millions of households. For teachers and learners alike, the release of funds marks a temporary reprieve in a sector long plagued by underfunding.