Education stakeholders urge EACC, DCI to probe Sh3.7 billion ghost schools scam

Education stakeholders, including parents and teachers, have called for an immediate investigation into a Sh3.7 billion scandal involving ghost schools and non-existent learners, urging the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to bring all culprits to justice.

The National Parents Association (NPA) and the Kenya Union of Post Primary Education Teachers (KUPPET) argued that the scandal had exposed deep-rooted weaknesses in the education financing system, with legitimate schools starved of funds while fictitious institutions pocketed billions.

Their concerns follow a special audit on capitation and infrastructure grants submitted to the National Assembly Public Accounts Committee (PAC), which unearthed massive fraud in funds allocated to primary and secondary schools.

The audit, covering four financial years from 2020/21 to 2023/24, shows that fake schools and ghost learners consumed billions in government funds, even as public schools struggled with a Sh117 billion funding gap.

NPA Secretary General Eskimos Kobia, speaking in Naivasha, said the revelations were disturbing and demanded immediate action against those involved.

“As parents, we want the EACC and the DCI to move swiftly and investigate the revelations by the Auditor General that some unregistered schools received millions in capitation, while public schools continue to suffer financially. We want all culprits to face the full force of the law,” Kobia said.

He noted that it was unacceptable for unregistered schools to receive funds meant for legitimate learners.

“That unregistered schools and ghost learners received substantial capitation and infrastructure funds at a time when the government claims to lack sufficient funds for public schools is shocking,” he added.

KUPPET Secretary General Akelo Misori also demanded a thorough investigation, terming the scam a gross betrayal of the education system and taxpayers.

“The DCI and the EACC should immediately investigate the scandal to uncover the extent of the mischief. How can we have ghost schools where billions disappear? It is unfortunate and almost unbelievable,” he said.

“The education system must be transparent and accountable. Such losses not only rob learners of vital resources but also undermine the credibility of both the education sector and government institutions.”

Auditor General Nancy Gathungu’s report revealed that 33 non-existent schools had received billions in capitation funds over the four-year period. It also indicated that inflated enrolment data in 723 schools led to overpayments of Sh3.59 billion.

The audit findings include that 99 junior secondary schools were overfunded by Sh30.8 million, 270 primary schools received capitation for non-existent learners, and 14 out of 83 sampled schools were paid Sh16.6 billion despite not appearing in County Directors of Education (CDE) records. Some of the schools had also closed down, while others operated under names different from those recorded in the National Education Management Information System (NEMIS).

The audit also revealed discrepancies between NEMIS enrolment data and actual school registers. Some schools were overfunded, while others received less than their entitlement.

Specifically, 354 secondary schools, 99 junior secondary, and 270 primary schools were overfunded by a total of Sh3.7 billion. 334 secondary schools, 244 junior secondary, and 230 primary schools were underfunded by Sh2.14 billion.

The Auditor General attributed these anomalies to weak controls in NEMIS, lack of audit trails, and poor coordination among key education agencies such as the Teachers Service Commission (TSC), Kenya National Examinations Council (KNEC), and the Kenya Primary School Education Assessment (KEPSEA).

With the funding irregularities worsening financial distress in schools, Kobia warned that the impact on learners could be devastating.

“The government must act now. The situation is dire. Schools are unable to pay suppliers, clear water and electricity bills, or keep children in class. The education system is on the verge of collapse if nothing is done,” he said.

He further cautioned that more than 30 per cent of students could drop out of school if the government proceeds with its plan to reduce capitation from Sh22,000 to Sh16,000 per student.

The scandal has sparked national outrage, with growing pressure on authorities to overhaul the education financing model and hold accountable those behind the fraud.