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A recent report from Public Accounts Committee reveals the theft of billions of taxpayers' money pocketed by corrupt officials and school heads. The Mundeku Secondary School is one of the 4 ghost schools in the Ministry records with 1,188 students used by an official to steal Sh27,329,598.95 from public funds. The report found another officer inflating enrolment data for 185 schools, resulting in the overpayment of Sh269, 254,288. The cases have been submitted to the Ethics and Anti-Corruption Commission for investigation.

Two former accountants at the Ministry of Higher Education, Science and Technology received 7.5 years in prison after they were found guilty of embezzling Ksh2.5 million. They faced ten counts for fraudulent acquisition of public property, abuse of office, conspiracy to defraud and stealing by a person employed by the public service. Another Education official was sentenced to 2.5 years after stealing Ksh1.5 million of public funds.

Kenya’s Universities Academic Staff Union (UASU) has threatened to go to court if the ministry of education does not take immediate action against the higher learning institutions in the country that are reported to be deducting from their employees’ salaries illegally without remitting deductions to the relevant institutions. Last month the ministry of education released an audit report showing that some public universities in the country were deducting billions of shillings from their employees' salaries and not regularly remitting the money to relevant agencies. The amount the institutions have been deducting illegally from the employees’ salaries is alleged to total approximately US$100 million.

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.

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.

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.