Kenya national schools audit: 6 financial questions MPs want answered

Kenya's national secondary schools are facing heightened financial scrutiny as the National Assembly's Public Investments Committee examines how institutions manage public funds. Auditor-General reports from the 2020/21 to 2024/25 fiscal years have raised concerns about payments to the Kenya Secondary School Heads Association (KSSHA), unpaid school fees, procurement, borrowing, textbook distribution, and weaknesses in financial controls.

The committee is questioning whether spending adheres to proper authority, documentation, controls, and value for money.

One of the central concerns revolves around payments to KSSHA. Committee chairman Dick Maungu has estimated that contributions from schools could total billions of shillings, though the exact national figure is yet to be verified. Maungu questioned KSSHA's legitimacy as a recipient of public funds, citing a case where one school transferred Ksh1.247 million to the association in the fiscal year ending June 2024.

The auditor found that the payment breached public-finance requirements, and the value for money realized from the expenditure could not be confirmed.

Another persistent issue is fee arrears. Schools owe fees dating back to 2010, and MPs are requesting detailed schedules showing outstanding payments. While some of these receivables may stem from delayed government capitation, schools face restrictions on withholding learners' certificates due to unpaid fees. The committee aims to strike a balance between recovering funds and safeguarding students' rights.

The distribution of textbooks provided by the government has also come under scrutiny. MPs found instances where schools received hundreds of extra books beyond their reported requirements, while institutions in marginalised and remote areas continued to report shortages. The committee wants the Kenya Institute of Curriculum Development to explain the allocation process and whether current enrollment data is being used.

Commercial borrowing by public schools for construction and other projects has also raised concerns. Maungu cited a case where a national school secured a Ksh50 million loan for a Ksh150 million project, despite the loan being cleared. The committee emphasized that borrowing by public schools must adhere to the required approval process, with Ministry of Education and Treasury approvals needed.

Procedural weaknesses in procurement have also been identified. Maungu noted that some schools lack qualified procurement officers despite legal requirements. The Public Procurement and Asset Disposal Act mandates specific procedures for public procurements, and the committee is examining whether schools have the necessary systems and personnel to ensure proper authorization and documentation.

Lastly, the committee is probing public assets, including schools operating without secure title documents and properties with unclear ownership arrangements. School land is a significant public asset, and without proper documentation, institutions face disputes, encroachments, and uncertainties over ownership. The parliamentary hearings underscore a broader accountability issue beyond the unauthorised levies controversy, questioning whether Kenya's national schools possess robust systems for authorizing spending, documenting payments, managing debts, procurement, asset control, and demonstrating value for money.