Kuppet protests over Disbursement of Free Education Funds to Schools

KENYA UNION OF POST-PRIMARY EDUCATION TEACHERS

MOE MUST CLEAN ON CAPITATION FUNDS ACCOUNTING

1. KUPPET wishes to express our concern at a sudden change in policy by the Ministry of Education that will throw the management of billions of shillings allocated for Free Secondary Education for the last two financial years into total confusion.
2. On 19 September 2023, the Principal Secretary for Basic Education, Dr Belio Kipsang, issued a Circular Ref. No. MOE.HQS/3/10/18 Vol. II/(1) to all County Directors of Education directing them to demand accountability from Principals for money not received at the schools.
3. Under the Public Financial Management Act and school financial regulations, Principals only account for funds received and used by their institutions. Where the government spends funds on behalf of schools, accountability for such expenditures lies with the Ministry of Education and the recipient agencies – not secondary schools.
4. Indeed, the Circular clearly states, “The Ministry has also remitted to KICD and CEMESTEA KSh100.00 and KSh40 per learner for textbooks and capacity building respectively from the tuition account. Another KSh675.00 per learner has been remitted to NHIF from the operations account to cater for medical insurance (EduAfya) for learners.”
5. Ironically, it demands that Principals confirm receipt of such monies and account for them. Moreover, it directs the County Directors of Education to obtain receipts from Principals for Sh4,002.87 per learner for the third term of 2023, when only Sh3,187.87 per learner were remitted to schools.
6. For the avoidance of doubt, information from Principals indicates that schools have not received any capitation funds for third term of 2023. The Sh3,187.87 remitted on 19 September partially offset the arrears owed from the last financial year (2022/2023) are as below:

DATE OF RELEASE	OPERATION VOTE HEAD	TUITION VOTE HEAD	TOTAL FUNDS
27 JUL 2022  (QTR 1)	3,442.99	846.25	4,289.24
5 OCT 2022   (QTR 2)	3,539.24	946.25	4,485.49
26 JAN 2023  (QTR 3)	3,541.92	872.00	4,413.92
14 JUN 2023  (QTR 4)	3,385.85	761.50	4,147.35
19 SEPT 2023 (Q1 ‘23)	3,355.67	647.20	4,002.87
TOTAL FUNDS SO FAR RECEIVED	17,265.67	4,073.20	21,338.87
BALANCE from 2022/2023			905.13

 

1. As per this schedule, the Ministry owes schools Sh905.13 per learner for the last financial year that ended on 30 June 2023. The Ministry owes schools a further Sh5,561 per learner for the first quarter of the current financial year 2023/2024. Cumulatively, this comes to approximately Sh19 billion that schools are yet to receive.
2. Even more important, out of the money so far disbursed to schools, Sh3,449.50 per learner has been retained by the government as per the schedule below.

QUARTER	Operation Retained	Tuition Retained	TOTAL
Q1	636.50	50.00	686.50
Q2	425.00	50.00	475.00
Q3	437.50	270.00	707.50
Q4	435.50	330.00	765.50
Q1 2023	675.00	140.00	815.00
TOTAL FUNDS RETAINED BY MINISTRY			3,449.50

 

In total, this over Sh10 billion that Principals did not receive and therefore cannot account for.

1. Even more worryingly, the Circular employs an old accountability model that the Ministry had repealed in June 2022. Up to that time, the government disbursed funds to schools based on school terms, where funds were disbursed three times in a year. However, from July 2022, the government adopted the quarterly disbursement in line with the Treasury’s funding cycle for all public entities.
2. Contrary to the information contained in the Circular, our schools have not received any funding for the third term of 2023. The institutions are grappling with serious financial challenges, unable to pay suppliers of goods and services, school contractors and generally meeting their obligations as they arise.
3. KUPPET urges the government to withdraw the Circular, to disburse the long-delayed funds to schools and take maximum care against possible disruptions to the school calendar at this critical time.
4. In addition to being short, the third term is packed with important academic events including the KPSEA, KCPE and KCSE examinations. Practical components of the KCSE exams including Agriculture and Home Science projects start early in the term, hence the need to guard against any disruptions.
5. To ensure capitation funding match the actual number of students in schools, the union calls for an audit of data in the National Education Management Information System (NEMIS).