The government has released Sh23 billion in capitation funds to support free primary and secondary education, in a move aimed at ensuring smooth learning operations across schools.
President William Ruto confirmed the disbursement, noting that each secondary school student will receive Sh4,766 for the second term, as part of the Free Day Secondary Education (FDSE) programme.
New Policy on Early Disbursement
Ruto announced a shift in policy that will see capitation funds released before the start of each school term, ending delays that previously disrupted learning.
“Tulikubaliana kwamba watoto wetu wasome… kabla ya watoto kufika shuleni, tunatoa pesa ya capitation watoto wakutane nayo shuleni,” he said.
He explained that the change is intended to ease financial pressure on school heads and ensure uninterrupted academic activities.
Breakdown of Capitation Funds
Basic Education Principal Secretary Julius Bitok said the funds cover the second term of 2026, which falls under the third quarter of the 2025/2026 financial year.
According to the Ministry of Education, Sh994 per learner has been allocated for teaching and learning materials, while Sh1,000 will go towards maintenance and infrastructure improvement in schools. In addition, Sh300 has been set aside for medical insurance, and Sh450 will support co-curricular activities.
The ministry also allocated Sh60 per learner to CEMESTEA for teacher capacity building, while Sh225 per student has been retained under the operations account to support centralised co-curricular activities.
Strict Accountability Measures
The ministry has directed school principals to issue official receipts upon receiving the funds and upload them through the National Education Management Information System (NEMIS).
School heads are also required to acknowledge receipt of funds within two weeks, maintain signed student records for accountability, and submit accurate enrolment data. Failure to comply with these requirements will lead to suspension of future funding.
Oversight and Compliance
County Directors of Education (CDEs) have been tasked with verifying school enrolment figures and ensuring accurate reporting.
Schools found to have received excess funds due to inflated enrolment data will be required to refund the surplus.
The ministry also directed that all official communication must include the Unique Institutional Code (UIC) to streamline record management.
Link to Universal Health Coverage
The government has further instructed schools to support the registration of students and parents under the Social Health Authority (SHA) as part of efforts to achieve universal healthcare.
Bitok urged school administrators to guide parents through the process, noting that access to healthcare remains a constitutional right.
