The Auditor General of Kenya has revealed a deep funding crisis in the public education sector, highlighting an underfunding gap of 117 billion Kenyan shillings in capitation over the past four financial years. Secondary schools are the most affected, with a shortfall of 71 billion shillings, followed by junior high schools at 31 billion and primary schools at 14 billion. The audit also uncovered fraud involving ghost schools, with 33 non-existent schools receiving billions of shillings in capitation funds during this period. Specifically, 14 ghost schools were found to have received approximately 16.68 million shillings despite having no infrastructure. The Auditor General criticized the flawed criteria used for capitation allocation and warned that the de-funding of education threatens Kenya's human capital development. Additionally, more than 163,000 students have been left without loans. A separate report by Usawa Agenda and Zizi Afrique highlighted other challenges in the education sector, including nearly 1,600 schools operating without laboratories, teacher shortages, and poor infrastructure. Many public secondary schools are reportedly struggling, with students skipping meals, principals using personal funds, and teachers being sent home due to the crisis.