A Kenyan educationist has raised fresh concerns over what he describes as persistent leakages in education funding, claiming that millions of shillings continue to be lost every year through fake schools and non-existent learners despite repeated audit warnings.
Davies Okombo says about Sh1.2 billion is being lost annually through what he terms ghost schools and ghost learners, pointing to 200 fake schools and 887,000 learners flagged in official reviews, and blaming weak enforcement and limited political action for the continued losses.
Speaking during a Radio Generation interview on Wednesday, he argued that education remains a protected right under Article 53 of the Constitution of Kenya, which provides for free and compulsory basic education, and is also backed by international commitments.
He referenced a 2025 forensic audit commissioned through Parliament’s Public Accounts Committee, which he said exposed 200 ghost schools and 887,000 ghost learners spread across the country.
Okombo said the government has since acknowledged the findings, which point to annual losses of about Sh1.2 billion through irregular capitation payments.
He added, “And we have this to say, ghost schools do not operate bank accounts, and ghost learners do not sign forms,”
At the same time, the Ministry of Education has flagged similar irregularities affecting the system, citing about 887,000 ghost learners, including 87,000 in secondary schools, alongside nearly 200 schools that do not physically exist, according to a nationwide audit verified in 2026.
The revelations have raised fresh questions over how capitation funds are managed and whether data systems used in registering schools and learners are reliable.
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Education remains the single largest recipient of national budget allocations, with heavy funding directed towards capitation, salaries, and infrastructure projects.
For the FY2024/2025 period, the ministry received about Sh628.6 billion, while the FY2025/2026 proposal has risen to about Sh656.6 billion, reflecting increased spending across key education programmes.
President William Ruto has ordered full digitisation of education records, directing that all learners, schools, and teachers be verified in real time to reduce fraud and strengthen accountability.
Education Cabinet Secretary Julius Ogamba has backed the audit results, saying the ministry is collaborating with oversight bodies to clean up records and eliminate ghost entries from the National Education Management Information System, which is being upgraded into a stronger digital platform.
He also said only fully verified schools will continue receiving government capitation, adding that investigations are ongoing with an aim of recovering lost funds and tightening controls.
Okombo, however, questioned how such irregularities have been allowed to continue despite multiple oversight layers within the education system and financial institutions.
He pointed out that school registration involves sub-county education officers, county education boards, and final approval by the ministry before institutions are added to national databases.
“How could these commercial banks go ahead and open bank accounts for ghost schools?” he asked.
He further questioned the role of investigative agencies and oversight institutions, including the DCI, the EACC and Parliament, saying audit findings have been available but have not led to arrests or clear action.
He argued that the money involved is traceable through bank accounts linked to registered entities.
“If money is sent to a ghost school account, that means that account is in a bank. How difficult is it to trace it?” he posed.
Okombo suggested the situation reflects either institutional failure or lack of willingness to act, saying the trend points to deeper governance problems.
“If you are not incompetent, then you are very competent at allowing money to disappear,” he highlighted, adding that continued losses show a breakdown in accountability systems.
He also criticised Parliament for failing to enforce audit recommendations, saying oversight reports should lead to concrete action rather than remain on paper.
He argued that the estimated Sh1.2 billion lost annually could instead be redirected to critical school infrastructure, including classrooms in underserved regions such as arid and semi-arid areas.
Okombo concluded by calling for stronger political accountability, including responsibility from senior education officials, saying leadership must be held answerable for systemic failures.