The government has introduced a new policy requiring school capitation funds to be disbursed before the start of each academic term, President William Ruto has announced.
Speaking during a visit to Murang’a, the President confirmed that Sh4,766 per student for the second term has already been released to secondary schools. He said the move is intended to ensure uninterrupted learning and smoother school operations.
Ruto noted that his administration has so far disbursed Sh23 billion to support free primary and secondary education. He emphasized that the new approach marks a shift from previous practice, where funds were often released after students had already reported to school.
Under the revised system, capitation funds will now be available in advance, allowing schools to prepare adequately before learners arrive.
The funds are meant to support the Free Day Secondary Education (FDSE) programme. According to Basic Education Principal Secretary Julius Bitok, the allocation of Sh4,766.49 per student covers the second term of 2026, which is the third quarter of the 2025/26 financial year.
In a memo to county directors of education, Bitok outlined how the funds will be distributed. Out of the total allocation, Sh994 will go towards teaching and learning materials, Sh1,000 for maintenance and improvement, Sh300 for medical insurance, and Sh450 for co-curricular activities. Additional allocations include Sh60 per learner for capacity building through CEMESTEA and Sh225 retained for centralised co-curricular activities.
School principals have been directed to issue official receipts to the State Department for Basic Education and submit copies to sub-county and county education offices. They are also required to confirm receipt of the funds through the National Education Management Information System (NEMIS).
Further, schools must maintain proper documentation, including signed student lists indicating admission details and allocated funds. The ministry has warned that failure to comply within two weeks of receiving the funds will result in suspension of future disbursements.
Education authorities have also instructed institutions to include their Unique Institutional Code (UIC) in all official correspondence to streamline record management and improve accountability.
