In a bold move to enhance accountability and transparency in the education sector, Kenya’s Prime Cabinet Secretary, Musalia Mudavadi, has reaffirmed the government’s commitment to fully digitising the disbursement of school capitation funds. The reform, he said, is long overdue and is designed to halt corruption and ensure funds reach learners effectively.
Speaking at a public forum on July 27, Mudavadi disclosed that alarming reports of embezzlement in the capitation process—estimated at up to KSh2 billion—have necessitated the shift from manual to digital systems. He emphasised that this transition is not optional but critical to safeguarding the country’s Sh600 billion education budget.
“We’re creating systems that trace every coin sent to schools,” Mudavadi said. “Education officials must be accountable. Capitation funds must serve our children—not line private pockets.”
The digitisation process is being implemented jointly by the Ministry of Education and the Ministry of ICT, with the eCitizen platform expected to serve as the primary tool for managing and monitoring disbursements. This shift aims to plug long-standing loopholes and allow for real-time tracking of funds at the school level.
The government currently disburses capitation funds in phases: 50% in Term One, 30% in Term Two, and 20% in Term Three. With the new digital framework, authorities hope to improve the efficiency and accuracy of this phased model.
Mudavadi also highlighted the government’s concern for students in tertiary institutions, many of whom struggle to afford meals and accommodation. He assured the public that support will be extended beyond tuition, ensuring no deserving student is left behind.
He condemned critics of the digitisation initiative, accusing them of resisting change to maintain corrupt practices. “Some prefer the manual system because it allows theft. We will not allow that anymore,” he said.
The reform marks a significant step in Kenya’s broader education and governance agenda, reflecting a renewed focus on equity, transparency, and financial discipline.