Prime Cabinet Secretary Musalia Mudavadi has firmly defended the government’s plan to digitise the disbursement of capitation funds to schools, describing the move as progressive and necessary for enhancing transparency and accountability in the education sector.
Speaking during a recent address, Mudavadi highlighted the need to streamline the current manual system, which he said is vulnerable to misuse and corruption. He pointed to reports indicating that an estimated Sh2 billion in capitation funds had been misappropriated, stressing that such losses must be curbed through robust digital oversight.
“We have had cases where funds meant for learners have not been used appropriately,” Mudavadi stated. “That is why we are working to digitise the entire process, from disbursement to monitoring, to ensure every cent reaches the intended beneficiaries.”
The digitisation initiative, a joint effort between the Ministry of ICT and the Ministry of Education, will leverage platforms like eCitizen and digital payment systems to track fund flows across schools. According to Mudavadi, this transition will also facilitate timely audits and better planning within the sector.
The government is set to allocate approximately Sh600 billion to the education sector and is keen to account for how every shilling is spent. “We want to relook at the whole process of disbursement and audit where the Sh600 billion goes and what the funds support,” said the Prime CS.
Mudavadi also addressed the plight of university and college students, acknowledging the financial hardships many face, including difficulty affording meals. He reaffirmed the government’s commitment to supporting deserving students, ensuring they receive sufficient aid for both academic and basic needs.
He dismissed criticism from those opposing the digitisation drive, accusing them of wanting to maintain manual systems to continue siphoning public funds. “We must move forward, use technology, and ensure that resources reach the people who need them,” he said.
Capitation funds are currently disbursed in three phases annually: 50 percent in Term One, 30 percent in Term Two, and 20 percent in Term Three. The digital shift aims to bring efficiency to this phased system and ensure equity in education funding.
