Kenya’s universities have been ordered to publish regular financial performance reports as part of sweeping regulations which take effect this year, aimed at lifting the veil of secrecy that has shrouded institutions’ financial status and effectively put millions of dollars at risk. Currently, the publication of financial performance for public universities takes as many as four years, a situation that has seen most institutions drift into financial problems. In addition, none of the private universities in the country has ever made public their financials despite their handling millions of dollars in student funds annually.

According to a confidential report, Kenya’s universities are facing serious management challenges resulting in admission flaws, inadequate staffing, and low standards of examination administration, supervision and research. The report also shows that some institutions cut corners to increase admissions in order to seal budgetary gaps, allow students to graduate within months, or admit students to unaccredited programmes from which they are then allowed to graduate. After returning their reports with factual corrections done, the institutions in question will have 30 days to issue corrective roadmap.

Stakeholders are still awaiting a response from the education cabinet secretary to a World Bank report released earlier this year which put Kenya’s Higher Education Loans Board on the spot for mismanaging its funds at the expense of needy students. The report, indicates that the Higher Education Loans Board is spending excessive money on administrative costs that could be added to students’ loans. It recommends an overhaul of the loan disbursement and recovery mechanisms.

The Ethics and Anti-Corruption Commission (EACC) launched a report on the Free Primary Education (FPE) programme, after the Ministry of Education revealed that most schools cannot account for the funds. According to the EACC Chief Executive Officer, the report will help in ensuring accountability in public schools, given that heads of schools will be required to detail how every shilling allocated by the government is spent.

Most schools in the country cannot account for books bought since introduction of free education in 2003, a confidential report by the Ethics and Anti-Corruption Commission (EACC) has revealed. The report has poked holes in the storage of textbooks in public schools noting that it is hard to establish the number of books purchased by most schools. It notes that despite the government releasing funds to schools to construct book storage facilities, most schools have not done so. According to the report, some schools bought one wooden cupboard which is maintained in the offices of head teachers or their deputies.

A new report has unearthed massive irregularities in the procurement of textbooks for public schools, with head teachers playing a key role in the racket. The fraud ranges from forged signatures, delivery of phantom books, overpricing and single-sourcing of suppliers by instructional materials selection committees at the school level. Education Cabinet Secretary recently said that though the government allocated Sh10 billion for books in the last three years, most schools did not have the materials. He estimated that the pupil-to-book ratio stood at 5:1 in primary schools.

The Government has set up a new audit body to crack down on corruption in schools. The body to be known as Directorate of School Audit (DSA) will be tasked with scrutinising the use of the billions of shillings sent to schools. According to the Education Principal Secretary, DSA will examine books of accounts to identify the expenditure leakages and report back to the ministry. School heads found to have presided over theft or misuse of the money will be forced to bear the responsibility.

Education Cabinet Secretary has described the auditing system used in Kenyan schools as a “big joke” and a great let-down and accused auditors of colluding with headteachers to give favourable reports even when money has been lost. He also decried the inappropriate use of free learning cash and the distribution of government-purchased books in schools and described the system of assessing the performance of teachers as still substandard.

The Education ministry is investigating a number of schools for allegedly inflating enrolment figures in a bid to unduly benefit from free learning cash. The Cabinet Secretary warned that appropriate action would be taken against individuals involved in the scandal, saying such a practice is a criminal offence punishable by law. The Auditor-General’s report on the Ministry of Education’s financial statements for the 2013/2014 financial year says the government had lost millions of shillings of capitation funds in public schools through inflated enrolment figures.

The President has ordered an audit of how public primary and secondary schools have spent the billions in free learning cash released to them across three years. Free Primary Education funds were first rolled out in 2003, with each child getting Sh1,020 per year. In 2014, the Jubilee government increased FPE to Sh1,420 to cater for an estimated enrolment of about 10 million children in about 23,000 public primary schools. Annually this costs Sh14 billion.