NAIROBI, Kenya – The future of the Jomo Kenyatta Foundation (JKF) hangs in the balance after a damning audit revealed deep-seated financial distress, operational failures and governance weaknesses that threaten the survival of the state agency and its education programmes.
According to the latest Auditor-General’s report, JKF had accumulated losses of Sh934 million by June 2025, raising serious doubts about its ability to continue as a going concern.
The foundation, which supports needy learners through scholarships and publishes educational materials, is struggling with shrinking revenues and ballooning liabilities.
Although JKF posted a reduced annual net loss of Sh167 million, down from Sh303 million the previous year, Auditor-General Nancy Gathungu warned that the marginal improvement was insufficient to reverse the agency’s deteriorating financial position.
“The losses have resulted in a substantial erosion of the net worth of the foundation,” Gathungu said, cautioning that JKF may be unable to meet its financial obligations as they fall due.
The audit paints a grim picture of JKF’s balance sheet, showing current liabilities of Sh779 million against assets of only Sh207 million, leaving the foundation with a negative working capital of Sh571.6 million—a key indicator of insolvency risk.
Publishing collapse hits revenues
JKF management attributes much of the financial strain to the collapse of its once-lucrative publishing business. Textbook sales, historically a major revenue stream, have plummeted following policy changes that opened the market to private publishers.
Publishing income dropped sharply by 79 per cent, from Sh117 million to Sh25 million, amid the absence of government textbook orders, intense competition in private schools, and large volumes of obsolete stock after the shift to the Competency-Based Curriculum (CBC).
“Lack of any government orders meant that the public schools segment was largely locked out for Jomo Kenyatta Foundation, leaving her to compete with other publishers in the very small private schools market,” JKF chairperson Rose Waruhiu noted in the annual report.
Scholarship role under threat
Beyond financial woes, JKF faces uncertainty over its core mandate. The foundation currently administers the World Bank-funded Elimu Scholarship Programme, which supports more than 14,000 learners across the country.
However, a presidential task force appointed by President William Ruto has proposed transferring the programme to a new Kenya Basic Education Bursary and Scholarship Council, potentially stripping JKF of one of its last remaining flagship roles.
Compounding the uncertainty, JKF has been listed among state agencies targeted for dissolution under ongoing parastatal reforms, further clouding its future.
Compliance failures and pending bills
The audit also uncovered widespread compliance and operational lapses. JKF failed to remit Sh99.4 million in statutory deductions, including PAYE, NSSF, NHIF and pension contributions, exposing the agency to penalties, interest and possible legal action.
Outstanding bills stood at Sh737 million, with Sh548 million overdue for more than a year. Gathungu warned that delayed payments increase the risk of litigation and additional financial losses.
Other red flags include failure to conduct quarterly stock counts—casting doubt on the accuracy of Sh31 million worth of reported inventory—non-compliance with employment requirements for persons with disabilities, staff earning below the legally required net pay threshold, unexplained adjustments to payables, errors in cash-flow statements and misstatements in grant disclosures.
The findings place JKF at a critical crossroads, caught between mounting debt, structural reforms and governance weaknesses—leaving its long-standing role in Kenya’s education sector increasingly uncertain.
