The Kenyan government plans to discontinue the decade-old examination fee waiver in 2026 and shift to a targeted subsidy model for national exams.
This means parents will generally be required to pay for their children’s national examination fees, including the Kenya Certificate of Secondary Education (KCSE), Kenya Primary School Education Assessment (KPSEA), and Kenya Junior Secondary Education Assessment (KJSEA, unless they are identified as “needy” through a yet-to-be-detailed means-testing system.
John Mbadi, Cabinet Secretary for National Treasury and Economic Planning, announced the policy change, emphasising fiscal responsibility and fairness.
He argued that parents who can afford high tuition fees for private schools should also cover examination costs, questioning why taxpayers should subsidise all students.
Mbadi assured the public that funding for this year’s exams is secure and urged parents not to panic while dispelling rumours of financial shortfalls.
The examination fee waiver was initially introduced in 2015 by President Uhuru Kenyatta for public schools and expanded to private schools in 2017, ensuring free access to national examinations.
Annual government funding for exams has increased from an initial KSh 4 billion to KSh 5 billion in recent years.
David Njeng’ere, CEO of the Kenya National Examinations Council (KNEC), supports a per capita funding approach over general grants, acknowledging the financial challenges posed by rising candidate numbers.
However, the proposed policy shift has raised concerns.
Silas Obuhatsa, Chair of the National Parents Association, called for public participation and warned that some children might be forced out of school due to their inability to pay exam fees.
He drew parallels to the contentious university funding model implemented in 2023, which has faced implementation difficulties and legal challenges.
Funding Challenges and Proposed Solutions
In February, the Parliamentary Budget Office (PBO) highlighted that despite the KSh 5 billion annual allocation for examination fees, the funding has been insufficient to cover KNEC’s budget deficits, especially with increasing enrollment.
The PBO proposes a cost-sharing arrangement between the government and parents, suggesting that the KSh 5 billion currently allocated could be redirected to other critical areas within the education sector.
The education sector faces a significant KSh 91 billion funding deficit, impacting capitation, loans, and scholarships attributed to increased enrollment under the 100 per cent transition policy.
Under the Free Primary Education (FPE) program, the government currently allocates KSh 1,420 per primary school learner annually and KSh 15,042 per junior school student.
For secondary education, the annual capitation is KSh 22,244 per learner, though this amount was recently reduced to approximately KSh 15,000 per year.
Capitation to schools is typically disbursed in three phases: 50% in term one, 30% in term two, and 20% in term three.
In March, schools received the remaining KSh 14 billion in capitation funds for the first term.
PBO Director Martin Masinde, in a report on the 2025-26 budget, stressed the importance of effective and efficient policy implementation to enhance economic resilience and improve service delivery.
Education Sector Faces KSh 91 Billion Deficit
The government’s current allocation for the education sector capitation has decreased to KSh 191 billion, down from KSh 214 billion in the 2023-24 period. This reduction has led to substantial funding gaps:
- Primary schools: KSh 661 million
- Secondary schools: KSh 16 billion
- Junior secondary education: KSh 15 billion
- Technical and Vocational Education and Training (TVET) institutions: KSh 3.6 billion
- University scholarships: KSh 5.3 billion
- Education loans: KSh 11.4 billion
- Continuing students’ capitation: KSh 33 billion
These resource gaps indicate that learners at various levels are not receiving the expected funding based on existing policies, raising concerns about long-term education quality.
Streamlining Bursaries to Address Funding Issues
To mitigate these shortfalls, the PBO recommends consolidating and redirecting existing resources, including bursaries, to areas with the greatest impact. Annually, national and county governments allocate KSh 20 billion to bursary programs.
However, the PBO points out that the fragmented management of these funds leads to inefficiencies and an opaque picture of resource needs.
The PBO proposes streamlining bursary allocations, suggesting capping the number of tertiary students receiving bursaries based on more equitable selection criteria.
This approach, they argue, could help address funding gaps in TVETs and secondary schools.