Schools reopen under fresh scrutiny as audit exposes illegal fees and procurement failures

Kenya's public schools have reopened for the third and final term with the government releasing Sh18.5 billion in capitation, but fresh audit findings are putting a different question at the centre of the education debate: why are parents still being asked to pay millions of shillings in unauthorised charges at some of the country's best-known public schools?

The latest reports by Auditor-General Nancy Gathungu identified illegal levies, questionable procurement, unsupported expenditure and incomplete projects in a number of public secondary schools for the financial year ended June 30, 2025.

The findings are particularly significant as learners return for the final nine-week term, which runs from August 24 to October 23.

At the same time, Education Cabinet Secretary Julius Ogamba has warned school heads against imposing unauthorised charges on parents, while confirming that the government has released Sh18.508 billion in Term Three capitation.

That puts schools under pressure from two directions: they are expected to operate within government funding rules while also dealing with longstanding financial demands and, in some cases, outstanding bills.

The question parents are asking

For parents reporting their children back to school, the issue is straightforward: what are they legally required to pay?

Government guidelines allow parents to meet specified costs such as school uniforms and certain boarding-related expenses. Additional levies require the necessary approval.

Yet the Auditor-General found several examples where schools collected substantial sums without the required authorisation.

At Alliance High School, parents contributed Sh42.25 million through a Parents Association support programme.

The audit said parents had agreed to contribute Sh30,792 each in March 2024 and later Sh26,000 in 2025, but the additional charges had not received the required Ministry of Education approval.

At Mang'u High School, parents paid Sh55.95 million in extra levies, including a charge of Sh46,082 per student for a support programme that had not been approved.

At Friends School Kamusinga, the school collected Sh32.69 million through a Sh10,000-per-student development levy without the required approval.

The audit also identified unauthorised charges at Nakuru High School, Uthiru Girls High School, Machakos School and Moi Forces Academy.

The amounts vary, but the common issue identified by the Auditor-General is the same: the schools collected money outside the approved fee framework.

The timing makes the findings more important

The audit covers the year ending June 2025. It therefore does not establish that the same charges are being imposed in the current third term.

But the findings remain relevant because the Ministry is now warning schools against precisely this practice as the new term begins.

Mr Ogamba has said schools should not impose unauthorised levies and that action will be taken against principals where violations are established.

The government's latest capitation announcement also changes the immediate context.

The Sh18.5 billion released for Term Three is divided among several programmes:

Sh1.4 billion for Free Primary Education;
Sh6.14 billion for Free Day Junior School Education; and
Sh10.96 billion for Free Day Secondary Education.

The release is intended to support school operations and learning activities.

But the disbursement does not automatically settle the wider funding problem.

Schools say the money is still under pressure

Education stakeholders have previously complained that capitation has not always been sufficient or has reached schools in fragmented disbursements.

The Kenya Union of Post Primary Education Teachers has argued that financial pressure on schools can encourage administrators to seek additional contributions from parents.

That creates an important distinction in the current debate.

Financial pressure may explain why a school seeks additional money, but it does not by itself make an unauthorised levy legal.

The Auditor-General's findings therefore raise two separate questions: whether schools are receiving enough public funding to meet their obligations, and whether the money they receive is being managed properly.

Procurement problems add another layer

The audit findings go beyond fees.

Several schools were found to have weaknesses in procurement, including contracts awarded to suppliers who did not meet mandatory requirements, direct procurement outside permitted limits and failures to maintain proper procurement documentation.

At Alliance Girls High School, the audit raised questions about the purchase of bakery equipment worth Sh1.32 million, including a commercial dough mixer costing Sh660,000.

The inspection documentation did not demonstrate that key specifications, including capacity, durability, safety and compatibility with the school's bakery requirements, had been adequately assessed.

The school also spent Sh10.19 million on a dormitory project for which important documents were missing, including architectural drawings, evaluation minutes, a contract and valid supporting payment documents.

The Auditor-General said the absence of documentation meant the propriety and value for money of the expenditure could not be confirmed.

At Alliance High School, the audit similarly questioned Sh7.18 million spent on upgrading a multipurpose hall because key tender, evaluation and inspection records were not provided.

These findings do not necessarily establish that money was stolen. Rather, they show that auditors could not obtain sufficient evidence to establish that some expenditures were properly procured or represented value for money.

That distinction is important when reporting audit findings.

A Sh154 million school project still unfinished

One of the most striking cases involves Kenya High School's science laboratory and technology centre.

The project began in 2020 at an initial cost of Sh114.63 million.

By June 2025, payments had reached Sh154.08 million, yet the project remained incomplete.

The project had gone through four contractors following repeated abandonment.

Physical inspection also identified defects, including cracks on a staircase and non-functional electrical sockets in the Physics Laboratory.

The Auditor-General consequently said value for money on the Sh154.08 million already paid could not be confirmed and that the intended objectives of the project had not been achieved.

For parents, this is where the audit moves beyond accounting language.

Money allocated to classrooms, laboratories and other facilities is ultimately intended to improve the learning environment.

When projects remain unfinished after substantial expenditure, learners are the ones who experience the consequences.

The KESSHA payments question

The audit also raises concerns about schools transferring money to the Kenya Secondary School Heads Association (KESSHA).

The Auditor-General questioned such transfers because KESSHA is a welfare organisation for school heads and sits outside the government's school funding framework.

The concern is not simply about the existence of the organisation.

It is whether schools can demonstrate that public funds transferred to an organisation outside the government funding structure are subject to adequate financial controls, transparency and accountability.

That question is likely to attract greater attention as schools receive another large round of public funding.

What should happen now?

The reopening of schools creates an opportunity to move the debate beyond another cycle of accusations over school fees.

There are three issues the Ministry and school boards now need to demonstrate.

First, parents need clarity. Schools should clearly communicate which charges are authorised and which are not.

Second, capitation needs to be traceable. The Ministry has said Sh18.5 billion has been released for Term Three. Schools should be able to account for how their allocations are received and spent.

Third, audit findings need follow-up. An audit report identifying unsupported expenditure or procurement weaknesses is not the end of the process. The critical question is whether the responsible institutions correct the problems and recover money where necessary.

The Ministry has previously undertaken school-data verification as part of efforts to ensure that capitation reaches genuine institutions and eligible learners.

The same principle of verification now needs to extend to how schools spend the money once it arrives.

The bigger problem: who pays for public education?

The latest developments expose a tension at the heart of Kenya's free-education system.

The government provides capitation to public schools, yet some institutions continue to face financial pressures while parents are asked to contribute additional money.

At the same time, Auditor-General reports are identifying weaknesses in the management of funds already available.

That means the debate cannot simply be reduced to "schools are underfunded" or "schools are charging parents illegally."

Both questions require answers.

If funding is inadequate, the government needs to address the financing gap.

If schools are receiving public money but failing to account for it properly, boards and administrators need to be held responsible.

And if parents are being charged unauthorised levies, the Ministry's warning needs to translate into enforcement rather than another circular.

What parents should watch this term

As schools settle into the third term, parents should pay particular attention to whether schools introduce new charges that were not communicated as part of the approved fee structure.

Where a school requests additional money for a project or programme, the key question is whether the charge has received the required approval.

The government's release of Sh18.5 billion provides an important test.

By the end of the term, the public should be able to see not only how much money was released, but also how much reached individual schools, what it was spent on and whether the financial problems identified by the Auditor-General are being fixed.

That is the point at which Kenya's school-funding debate moves from announcements to accountability.