The Kenya National Examinations Council is facing a severe financial crisis, with its ability to operate now dependent on urgent government support, Auditor-General Nancy Gathungu has revealed.
The examinations body has for years struggled to pay exam officials, a situation worsened by chronic underfunding that threatens its operations.
Gathungu’s audit shows that as of June 2025, Knec’s liabilities stood at Sh2.81 billion while its current assets were only Sh694.8 million, leaving it with a negative working capital of Sh2.12 billion and an accumulated deficit of Sh2.79 billion.
She warned that “continued operations as a going concern will depend on sustained support from the government, donors and creditors,” highlighting the fragility of the council’s finances.
The council itself acknowledged the problem before the National Assembly’s Public Investment Committee on Governance and Education, attributing its financial strain to insufficient budget allocations over several years.
In its response, Knec noted: “Resolution remains contingent on implementation of the committee's recommendations that examinations should be funded on capitation basis rather than grants.”
The insolvency declaration comes as thousands of teachers who participated in the 2025 Kenya Certificate of Secondary Education and Kenya Primary School Education Assessment exams remain unpaid for their work as invigilators, supervisors, and examiners.
On Tuesday, Omboko Milemba, chairman of Kenya Union of Post Primary Education Teachers, warned that the union will take action against Knec if the backlog of payments is not addressed promptly.
With mounting liabilities and delayed staff payments, the council’s capacity to run examinations smoothly is under serious threat, raising concerns over the impact on future national assessments and the broader education system.