NAIROBI, Kenya – Budget and finance experts advising Members of Parliament have called for the scrapping of the national examination fee waiver, arguing that it has failed to address funding gaps at the Kenya National Examinations Council (KNEC).
The Parliamentary Budget Office (PBO) now recommends a cost-sharing arrangement between the government and parents, saying the state’s Sh5 billion annual allocation for exam fees could be better utilized in other pressing areas within the education sector.
The waiver, introduced by former President Uhuru Kenyatta in July 2020, was meant to ensure free national exams for both public and private school learners.
However, increased student enrolment—driven by the 100% transition policy—has put severe strain on government resources, leaving KNEC with huge budget deficits.
According to the PBO’s latest report on the 2025-26 budget, the education sector is facing a Sh91 billion shortfall, affecting key areas such as capitation, loans, and scholarships.
1. Primary schools face a funding gap of Sh661 million
2. Secondary schools have a deficit of Sh16 billion
3. Junior schools require an additional Sh15 billion
4. TVET institutions are short by Sh3.6 billion, while university scholarships need Sh5.3 billion
5. Higher education loans have an Sh11.4 billion shortfall
6. Continuing students’ capitation remains Sh33 billion underfunded
PBO director Martin Masinde warns that without urgent intervention, the funding gaps could impact the quality of education nationwide.
To ease the pressure, the PBO suggests consolidating and reallocating bursaries, which currently total Sh20 billion annually at both national and county levels.
Experts argue that the current fragmented approach to bursary management creates inefficiencies and cases of multiple allocations, making it difficult to track real financial needs.
“The government must move beyond designing policies and ensure effective implementation to enhance economic resilience and improve service delivery,” Masinde said.
The experts further propose capping the number of tertiary students receiving bursaries, with allocations based on a clear equity-based criteria.
The call to scrap the exam fee waiver is expected to spark debate, especially among parents who have benefited from the subsidy.
However, with Kenya’s education sector struggling with chronic underfunding, policymakers may have to make tough choices to ensure sustainability.
