NAIROBI, Kenya, Jul 16 – A special audit by the Office of the Auditor General has uncovered a shocking revelation: 14 non-existent schools received a total of Sh16.6 billion in capitation funds over four financial years.
The findings shared on Tuesday raise concerns over fraudulent disbursement and accountability in Kenya’s education sector.
The audit, commissioned by the National Assembly Public Accounts Committee (PAC), reviewed data from 2020/2021 to 2023/2024 and exposed glaring loopholes in the National Education Management Information System (NEMIS)—the system used by the Ministry of Education to allocate funds based on student enrollment.
“These schools did not exist in county education records, and County Directors of Education (CDEs) were unaware of their presence,” said Justus Okumu, Director of Audit, during a session with MPs.
The audit team, which inspected eighty-three sampled schools, found that the fourteen ghost institutions appeared only in NEMIS records.
Despite this, they were allocated billions in capitation—money meant to support free basic education in legitimate schools across the country.
Adding to the concern, six other schools among the sample received Sh889,348 despite having ceased operations, while thirteen schools received a combined Sh11 million but had names in NEMIS that did not match their official registration.
Lawmakers expressed shock following revelations.
“We must identify the heartless public officer who pressed the button to release funds to ghost schools,” said Funyula MP Wilberforce Oundo.
“This is not just negligence—it borders on criminality.”
“The NEMIS system was clearly manipulated. It was never about service—it was about business,” Chepalungu MP Victor Koech added, alleging that senior Education Ministry officials may have used the platform for personal enrichment.
Overfunded schools
The audit also found that inflated enrollment data in NEMIS led to some schools being overfunded, while others were severely underfunded, highlighting systemic flaws in data verification and fund distribution.
Committee Chairperson Tindi Mwale said those implicated will be held accountable.
“We will summon Education Ministry officials to explain these irregularities. Special audits take precedence, and we will demand answers on the Sh16.6 billion disbursed to non-existent schools,” Mwale said.
The scandal raises questions about the integrity of government systems and the level of oversight in public financial management—particularly in critical sectors like education.
