An audit has uncovered massive losses in Kenya’s education sector after it emerged that at least 26 non-operational schools have remained on official government records for years, costing taxpayers an estimated KSh1.1 billion annually in fictitious capitation funds.
The findings stem from a nationwide verification exercise conducted between September and October 2025, which also revealed the existence of more than 87,000 “ghost learners” recorded in government systems despite having no traceable presence in any learning institution.
According to the audit report, 16 primary schools and 10 secondary schools were found to be non-operational but were still listed as active in official education databases. The continued inclusion of these schools created loopholes that allowed capitation funds meant for public education to be misappropriated.
The exercise further revealed that several schools with fewer than 10 learners continued to receive government funding, despite failing to meet minimum enrollment thresholds required for public financing.
As a result of the data clean-up, declared enrollment in public schools dropped significantly from 11.6 million learners to just over 11 million. The adjustment left more than 500,000 learners unaccounted for, underscoring persistent weaknesses in data management and verification within the basic education system.
Education officials estimate that the government has been losing approximately KSh1.1 billion every year, with the funds believed to have been siphoned through capitation allocations to schools that either no longer existed or had negligible enrollment.
The audit attributes the losses to inaccurate records, weak oversight, and inadequate verification mechanisms, raising fresh concerns over accountability in the management of public education funds.
