MINISTRY APPROVAL

Machogu stops loans, hire purchase contracts for Junior Secondary

This halts common financial contracts which include purchase of school buses and vans

In Summary
  • This, as the ministry confirmed that Sh9.6billion Grade 7 capitation has been sent to school accounts.
  • The primary schools will receive Sh15,042 for every Grade 7 student registered on the NEMIS portal.
Education PS Belio Kipsang and CS Ezekiel Machogu appears before National Assembly Education Committee on April 13, 2023.
Education PS Belio Kipsang and CS Ezekiel Machogu appears before National Assembly Education Committee on April 13, 2023.
Image: WINNIE WANJIKU

Primary schools hosting Grade 7 students will not be allowed to take loans without approval from the Ministry of Education.

This is as the ministry confirmed that Sh9.6 billion Grade 7 capitation has been sent to school accounts and gave a breakdown of how the funds will be spent.

“Junior secondary schools may not enter into financial contracts e.g hire purchase, bank loans without express written approval of the cabinet secretary,” the circular reads.

The circular dated April 14, was signed by Basic Education PS Belio Kipsang and copied to Education CS Ezekiel Machogu and other officials.

This puts a stop to common financial contracts which include purchase of school buses and vans.

“Every head of institution shall be responsible for application and utilisation of funds as the accounting officer of the school,” Kipsang said.

According to the 2022/2023 supplementary budget estimates, there is an allocation of Sh9.6 billion to cater for 1.2 million Grade 7 learners.

The primary schools will receive Sh15,042 for every Grade 7 student registered on the NEMIS portal.

According to JSS guidelines, the Special Sub-Committees were to open JSS bank accounts for tuition capitation, operational capital funds and infrastructure grants after an introduction letter from the subcounty director of education.

“Funds in the tuition account must be utilised for the procurement of teaching and learning materials only. No virement is authorised from the tuition account,” he said.

The funds in the tuition account are to be utilised as follows; Sh5,784 teachers guide per school.

Capacity building takes Sh100, textbooks and supplementary readers cost Sh3,100, laboratory materials- Sh225 and materials for CBC practical’s cost Sh360.

“Assessment of learners takes Sh258 and their stationery/ writing materials cost Sh800. Total tuition cost per student is Sh4,843,” he said.

Further, Kipsang directed that the operational accounts be used for banking government subsidies except tuition funds.

These include Sh110,000 as administrative cost per school, Sh1,500 repairs and maintenance.

“Others are Sh200-administrative costs, Sh200-co-curricular activities, Sh200- local transport and travel, Sh325 for the medical insurance,’ he said.

The total operation cost per student is Sh2,425.

While submitting the estimates to the committee, PS Kipsang noted that the Grade 7 capitation requirement is Sh19.1 billion.

"The capitation requirement for terms I and II will be Sh15.7 billion.  Therefore, the total requirement is Sh34.9 billion," Kipsang said.

He said the amount was arrived at, after consultation with an international agency.

"In 2020, we had signed a consultancy with World Bank to see how will fund Grade 7, notwithstanding domiciling," Kipsang said.

He said the tentative figure was Sh18,600 but the ministry settled on Sh15,042.

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