Billion-Shilling Scandal: Auditor General Uncovers 33 Ghost Schools in Kenya’s Education Sector

In a shocking revelation that exposes the depth of corruption in Kenya’s education sector, Auditor-General Nancy Gathungu has disclosed that 33 non-existent schools fraudulently received over KSh3.7 billion in capitation funds between the 2020/21 and 2023/24 financial years.  

This massive fraud was brought to light through a special audit report tabled before the Public Accounts Committee (PAC). 

According to a report by the Daily Nation, the scam revolves around Kenya’s National Education Management Information System (Nemis), a platform intended to streamline data collection and funding allocation for public schools.  

However, the audit revealed that many of the schools listed in Nemis have no physical existence, yet they continued to receive generous state funding as if fully operational. 

This scandal erupts at a time when public education in Kenya is reeling from a KSh117 billion funding deficit, affecting primary, junior, and secondary schools alike.  

Secondary schools were found to be the hardest hit, followed by junior and then primary schools, highlighting a troubling misalignment between actual educational needs and government support. 

The systemic failure doesn’t stop at ghost schools. The Auditor-General’s investigation also found that even genuine, functioning schools were plagued by ghost students, with 723 out of 1,039 schools sampled showing glaring mismatches between Nemis records and real student enrollment.  

In many cases, schools were sharing a single bank account, blurring accountability lines and making it nearly impossible to track how public funds were being used. 

MPs reacted furiously to the findings, demanding urgent reforms to the flawed Nemis system, which some allege may be intentionally manipulated to favor or punish specific regions.  

The audit report also raised concerns over the equity of the current capitation funding model, pointing out that it fails to consider the unique needs and contexts of individual schools. 

These revelations come as critics accuse the Ministry of Education of prioritizing profits over purpose, with some suggesting that education is increasingly being treated like a business rather than a public service.  

The latest revelations call into question the Ministry’s oversight and highlight the urgent need for accountability, transparency, and reform to safeguard Kenya’s future generations.