Broken Promises, Broken System: Underfunding & NEMIS Flaws Rock Kenya's Education

Kenya's public education sector is in deep financial distress, as the Auditor General's office exposes a staggering Ksh.117 billion underfunding by the National Government between 2021 and 2024. Discover how this shortfall is suffocating schools with debt and how inconsistencies in the NEMIS system are exacerbating the crisis, leading to both under- and over-funding.

Brenda Ochieng'
July 16, 2025
A recent, scathing report by the Auditor General’s office has cast a glaring spotlight on the dire financial challenges facing Kenya's public education sector. Many schools across the nation are reportedly "suffocating under debt," a direct consequence of persistent and substantial underfunding by the National Government. This alarming revelation was laid bare by Auditor General Nancy Gathungu in a special report tabled before the Public Accounts Committee of the National Assembly.
The comprehensive audit, conducted over the financial years spanning 2021 to 2024, painted a grim picture: public schools collectively received Ksh.117 billion less than their allocated budgets. Secondary schools bore the brunt of this financial shortfall, being the most affected segment of the education system.
Justus Okumu, Director of Audit in the Auditor General’s office, elaborated on these findings before the committee chaired by Tindi Mwale. He disclosed that secondary schools alone were deprived of Ksh.71 billion over the four-year period. Junior secondary schools faced a deficit of Ksh.39.9 billion, while primary schools experienced a Ksh.14 billion shortfall during the same review period.

Okumu minced no words in identifying the root cause: "The main problem facing public schools is underfunding. The Ministry comes up with a budget for various school activities, but it is always scaled down. As a result, some activities are either shelved or undertaken, leading to the accumulation of pending bills." This consistent budget slashing creates an unsustainable financial environment, forcing schools into a perpetual cycle of debt and compromising the quality of education delivery.
The audit also brought the National Education Management Information System (NEMIS) under sharp scrutiny. The system, designed to manage student data and facilitate funding disbursements, was found to display inconsistent student numbers when compared to actual school enrollments. This critical flaw was directly implicated in the erratic allocation of funds, with some schools receiving less than their due, while others paradoxically received more funds than they were entitled to.
According to the audit's findings, 354 secondary schools were overfunded by Ksh.3.5 billion, 99 junior secondary schools received an excess of Ksh.30.8 billion, and 270 primary schools benefited from an excess of Ksh.79.9 million. This sums up to a staggering Ksh.3.7 billion in overfunding that could have potentially alleviated the financial strain on underfunded institutions. Conversely, the widespread underfunding across other schools prompted members of the Public Accounts Committee to pointedly question the very integrity of the NEMIS system, calling for an urgent review and rectification of its processes.

About the Author

Brenda Ochieng'

Brenda Ochieng'

Brenda Ochieng' is a passionate storyteller and film enthusiast. With a background in film and video production and she brings a unique blend of creativity and technical expertise to her work. As a dedicated blogger, Brenda loves sharing insights on production techniques, blogging, and the art of storytelling. She is also a skilled editor and communicator, bringing a fresh perspective to her writing. Join Brenda as she delves into the captivating world of entertainment and news, sharing her knowledge and passion with you.

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