RE: GUIDELINES ON IMPLEMENTATION OF FREE DAY SECONDARY EDUCATION FOR THE YEAR 2023
1.0 INTRODUCTION
1.1 Purpose
This circular is issued in accordance with article 48 of the Public Finance Management (PFM) Act, 2012, and article 39 of the Basic Education Act 2013, to provide guidelines for the utilization of the Government Subsidy to Secondary schools in the implementation of Free Day Secondary Education (FDSE) programme for the Year 2023. The academic calendar will revert to 39 weeks from 30 weeks. The purpose of the circular is to provide:-
1.1 Specific Guidelines for secondary schools on: –
1.1.1 Funding for secondary education under the FDSE programme
1.1.2 Bank accounts to be held by schools and how they are to be operated
1.1.3 Fees Structures
1. 1.4 Parental obligations in secondary schools
1. 1.5 Financial obligation of secondary schools
1.1.6 Ineligible expenditures in secondary schools
1. 1.7 Employment by Board of Management of secondary schools
1.2 Information on: –
1.2.1 Medical insurance cover for students in secondary schools
1.2.2 Transfers and re-entry
1.2.3 Procurement and Delivery of SET books to secondary schools
1.2.4 The annual procurement plan for secondary schools
2.0 Background
In 2023, the Government of Kenya (GOK) will continue to ensure attainment of Universal Secondary Education (USE) as provided for in the Medium-Term Plan Ill (2018-2022) of Vision 2030, the Constitution of Kenya, 2010, the Post COVID19 Economic Recovery Strategy and Sessional paper No 1 of 2019, a policy framework for Education Training and Research.
Secondary schools are required to: (i) meet schooling needs of all learners; (ii) ensure high quality and relevant content delivery; (iii) raise standards of secondary education; (iv) ensure gender parity in enrolment; and (v) unlock technology for effective service delivery.
3.0 SPECIFIC GUIDELINES
3.1 FDSE Capitation to Schools
GOK subsidy (Capitation) to schools to actualize Free Day Secondary Education (FDSE) will be KES.22,244.00 annually per learner as stipulated in Table 1.
Table 1: FDSE Structure
| Item | Description | Amount |
| (i) | Tuition (Teaching Learning materials and exams) | 4,144.00 |
| (ii) | Medical/Insurance | 2,000.00 |
| (iii) | Activity | 1,500.00 |
| (iv) | SMASSE | 200.00 |
| (v) | *Other Vote heads (Local Transport and Travel, Administrative costs, Electricity, Water and Conservancy, Personnel Emolument) | 9,400.00 |
| (vi) | Maintenance and Improvement | 5,000.00 |
| Grand Total | 22,244.00 |
Provision of the GOK Subsidy (capitation grants) to schools on a termly basis as will be communicated. The following shall apply during disbursements:-
3.1.1 The GOK subsidy will be provided to public schools under the following conditions: –
3.1.1.1 The school MUST be duly registered and headed by a Principal appointed by Teachers Service Commission (TSC).
3.1.1.2 The school MUST be registered on the National Education Management Information System (NEMIS) platform
3.1.1.3 The school MUST register and update learners records on NEMIS
3.1.1.4 Bank accounts for Tuition, Operations and Infrastructure Grants as operated by the school MUST be registered in NEMIS and with MOE at all its levels.
3.1.1. 5 Details of Bank accounts for Infrastructure be submitted to the Ministry before the end of the second quarter i.e March15th.
3.1.2 Enrolment data to be used for provision of the GOK Subsidy will be obtained from NEMIS on various dates as follows: –
3.1.2.1 First Tranche 15th December 2022
3.1.2.2 Second Tranche 31st March 2023
3.1.2.3 Third Tranche 30th June 2023
3.1.3 Under the Operations Account, schools may seek authority from the CEBs to vire savings or surplus funds from one item to another when it is absolutely necessary but the same does not apply for both Tuition and the Infrastructure Accounts.
3.1.4 Personnel emolument will not be restricted to payment of Non-teaching staff.
3.2 School Data on NEMIS
It is the responsibility of the Principal to ensure accuracy of the data available on NEMIS where every eligible learner is fully registered on the platform. The following shall apply: –
3.2.1 NEMIS must be used at all times during admission and transfer of students;
3.2.2 Transfers of students should be avoided in the course of the academic year and may only be sanctioned by the Director General under special circumstances;
3.2.3 Funds will be disbursed using the data available on NEMIS at the time of disbursement as indicated in 3.1.2;
3.2.4 Schools which receive GOK subsidy for students above the enrolment will be penalized and the Principal surcharged for loss of public resources as provided for in the PFM Act, 2012 Sections 197, 198 and 202;
3.2.5 Principals should ensure that schools records on NEMIS are accurate at all times by regularly updating these records;
3.2.6 Changes in information on a school’s bank accounts WILL ONLY be done at MOE headquarters. Requests for change should be generated by the school and forwarded by the Sub County Director of Education to Director Secondary Education.
3. 3 Insurance and Students Medical Cover
To ensure effective implementation of the five-year contract entered between the Ministry of Education (MOE) and the National Hospital Insurance Fund (NHIF) for the provision of comprehensive medical cover to all the students in public secondary schools, the following should be adhered to:-
3.3.1 Principals SHOULD acquaint themselves with the terms of the cover to ensure that students access quality health services from NHIF accredited health facilities and cease requesting parents to meet medical expenses.
3.3.2 Schools MUST fully register a student in NEMIS for him/her to obtain an NHIF number to be able to access services even when on holidays.
3.3.3 Principals MUST ensure that all learners know their UPI and NHIF numbers by entering this information in their Identification Cards.
3.3.4 Principals should inform parents about the requirement for the cover.
3.3.5 Principals SHOULD to send death notification letters to the Principal Secretary within seven (7) days of death of any student in their schools and also help their parents/guardians fill a claim form for last expense and group life benefits.
3.3.6 MOE will retain KES.1,350.00 from the medical vote head to fund the medical cover. The rest of the vote head funds will be disbursed to schools to meet insurance related expenses.
3.3.7 At the health care provider, students shall present a letter of introduction written, duly endorsed and signed by the respective school Principal or the Deputy Principal. The letters must be original letters and not copies.
3.3.8 The letter should contain the name of student, their age, Gender, Admission number and UPI number. Schools should keep copies of the letters and a register of the students who have been released to seek health care services.
3.4 Fees Structures
Given that the academic calendar will revert to 39 weeks from 30 weeks for the academic year commencing on January 2023, Parents will continue to pay approved fees. In this regard, the fees to be paid for the various category of schools is as indicated in parts 3.4.1, 3.4.2, 3.4.3 and 3.4.4 respectively.
3.4.1 Fees structure for Day Schools
GOK will continue to offer free day schooling and the fees structure for day schools in shown in Table 2.
Tabe 2: Fees Structure for Day Schools
| Vote Heads | Parent | GOK (KSH) |
| Teaching learning materials and exams | 0 | 4,144.00 |
| SMASSE | 0 | 200.00 |
| Maintenance and Improvement | 0 | 5,000.00 |
| Activity fee | 0 | 1,500.00 |
| Medical and Insurance | 0 | 2,000.00 |
| *Other vote heads (Local Transport and Travel, Administrative Costs, Electricity, Water and Conservancy, Personnel Emoluments) | 0 | 9,400.00 |
| Total school fees | 0 | 22,244.00 |
3.4.2 Fees structure for Boarding Schools Category A*
Schools classified as Category A* are all National Schools and Extra County Schools that are located in the following towns: Nairobi, Mombasa, Nakuru, Kisumu, Nyeri, Thika and Eldoret only. For these schools, GOK will provide a subsidy for each learner in that is equal to the subsidy for each learner in a day school. In order to meet the cost of boarding as well as maintenance and improvement, parents will pay the boarding fees as shown in Table 3.
Table 3: Fees Structure for Category A* Boarding schools
| Vote head | GOK | Parent | Total (Ksh) |
| Teaching, Learning materials and Exams | 4, 144 | 0 | 4, 144.00 |
| Boarding Equipment and Stores | 0 | 30,385 | 30,385.00 |
| Maintenance and Improvement | 5,000 | 2,000 | 7,000.00 |
| *Other vote heads- (Local Transport and Travel, Administrative Costs, Electricity, Water and Conservancy, Personnel Emolument) | 9,400 | 20,371 | 29,771.00 |
| Activity fees | 1,500 | 798 | 2,298.00 |
| Medical and Insurance | 2,000 | – | 2,000.00 |
| SMASSE | 200 | – | 200.00 |
| Total school fees | 22,244 | 53,554 | 75,798.00 |
3.4.3 Fees structure for Boarding Schools Category B*
For these schools, GOK will provide a subsidy for each learner in that is equal to the subsidy for each learner in a day school. In order to meet the cost of boarding as well as maintenance and improvement, parents will pay the boarding fees as shown in Table 4.
Table 4: Fees Structure for Category B* Boarding schools
| Vote Head | GOK | Parent | Total (Ksh) |
| Teaching, Learning Materials and Exams | 4,144 | 0 | 4,144.00 |
| SMASSE | 200 | 200.00 | |
| Medical and Insurance | 2,000 | 0 | 2,000.00 |
| Activity fees | 1,500 | 250 | 1,750.00 |
| Boarding Equipment and Stores | 0 | 25,385 | 25,385.00 |
| Maintenance and Improvement | 5,000 | 2,000 | 7,000.00 |
| *Other Vote heads (Local Transport and Travel, Administrative Costs, Electricity, Water and Conservancy, Personnel Emolument) | 9,400 | 12,900 | 22,300.00 |
| Total school fees | 22,244 | 40,535 | 62,779.00 |
3.4.4 Fees structure for Special Needs Boarding Schools
Schools classified as Special needs are those schools that cater for learners with impairment e.g. visual, physical, hearing and mental. For this schools GOK will provide an enhanced capitation to KES.57,974.00 per learner. This includes a GOK subsidy of KES.23,220.00 per learner for Boarding Equipment and Stores and a top up grant of KES.12, 510.00 per learner to cater for assistive devices and any additional personnel needed. In order to meet the cost of boarding as well as maintenance and improvement, parents will pay the boarding fees as shown in Table 5
Table 5: Fees Structure for Special Needs Boarding Schools
| Vote Heads | GOK | Parent | Total (Ksh) |
| Teaching, Learning Materials and Exams | 4,144 | 0 | 4,144.00 |
| Boarding Equipment and Stores | 23,220 | 10,790 | 34,010.00 |
| Maintenance and Improvement | 5,000 | 2000 | 7,000.00 |
| *Other Vote heads (Local Transport and Travel, Administrative Costs, Electricity, Water and Conservancy, Personnel Emolument) | 9,400 | 0 | 9,400.000 |
| Activity fees | 1,500 | 0 | 1,500.00 |
| Medical and Insurance | 2,000 | 0 | 2,000.00 |
| “Top Up | 12,510 | 0 | 12,510.00 |
| SMASSE | 200 | 0 | |
| Total school fees | 57,974 | 12, 790 | 70, 764.00 |
3.4.5 Maintenance and Improvement Funds
MOE has provided for the use of KES. 5,000.00 per student from the GOK subsidy as Maintenance and Improvement Fund per year to ensure a proper learning environment with adequate school infrastructure and other improvements. Similarly, for boarding schools, an additional KES.2,000.00 per student is provided for as a parent’s contribution. This vote should only be used for immovable assets and other form of infrastructure in the school that may require upgrading. Approval must be sought from the relevant office on utilization of this vote. Detailed guidelines will be issued on the approval of projects under this fund.
3.5 Bank Accounts
To ensure accountability and smooth implementation of the FDSE programme, all schools are required to operate the following bank accounts.
3.5.1 Tuition Account:- For banking of tuition funds and all payments should strictly be made by cheques. Funds in the tuition account must be utilized for the procurement of teaching and learning material (TLMs) only.
3.5.2 Operations Account:- This account is used for banking of all GoK subsidies except the tuition and infrastructure funds.
3.5.3 School Infrastructure Account:- for banking infrastructure grants from GOK and Maintenance and Improvement (M&I) funds.
3.5.4 Boarding Account:- This account is for banking of funds paid by parents for boarding related expenses
3.5.5 A Saving Account:- This account is for banking funds from the Boarding Account Cash Book that cannot be put to immediate use.
3.5.6 Schools with income generating activities shall open separate bank accounts for the same.
3.6 Operational Procedures for School Bank Accounts
In addition to the above, the following procedures will continue to apply:
3.6.1 Each account must have a separate cash book.
3.6.2 All schools must acknowledge receipt of funds by a letter to the (DE/uploading an official receipt on the NEMIS plat form.
3.6.3 A receipt is issued to every learner for the amount received as GOK subsidy for every disbursement made.
3.6.4 Schools must post on their notice boards the amounts received.
3.6.5 No virement is authorized from the Tuition Account.
3.6.6 All CDF and donations or funds from Harambee must be receipted officially and entered into the school Cash books. These include incomes from hire of school facilities e.g., grounds, classrooms, halls or billboards on school compounds.
3.6.7 School may open additional bank accounts as may be necessary. For example, school may need a bank account for CDF funds only.
3.7 Financial Obligations
All schools’ management are expected to ensure prudence in the use of school funds and to adhere to the laid down financial regulations as stipulated in the reviewed Handbook on Financial Management for Public Secondary Schools, Teacher Training Colleges and Technical and Vocational Colleges in Kenya issued by the MOE, the Public Finance Management Act, 2012 and the Public Procurement and Disposal Act, 2015.
All stipulated accounting procedures and other necessary measures, including cost-saving, must be adhered to by all schools at all times. In addition, the following will apply:-
3.7.1 Schools MAY NOT enter into financial contracts e.g., Hire purchase, bank loans without the express written approval of the Cabinet Secretary in line with Section 18 of 4th Schedule of the Basic Education Act, 2013.
3.7.2 Every Principal shall be responsible for application and utilization of funds as the Accounting Officer of the school. Guidelines of the same shall be given for each disbursement.
3.8 Ineligible Expenditures
As stipulated in the Public Finance Management (PFM) Act, 2012,
3.8.1 Every public officer employed in a public entity shall comply with the Constitution and all laws relating to the conduct of public officers when carrying out a responsibility or exercising a power under this Act.
3..8.2 Without prejudice to PFM Act provisions, a public officer shall ensure that the resources in his purview are used in a way, which is (a) lawful and authorized; and (b) Effective, efficient, economical and transparent.
3.8.3 All procurement of goods and services is to be carried out in accordance with Article 227 of the Constitution and the relevant legislation on procurement and disposal of assets.
3.8.4 An Accounting Officer may not authorize payment to be made out of funds earmarked for specific activities for other purposes other than those activities.
Ineligible expenditure will arise when such expenditures do not adhere to the law and are not aligned towards the goal of students learning, which are the school’s main activities.
3.9 Board of Management (BOM) Employees
MOE will continue to disburse funds to support the BOM employees. To minimize costs, it is necessary to rationalize the recruitment of such cadre of staff. It shall be the responsibility of the Boards of Management (BOMs) to hire Non-Teaching Staff at terms commensurate with qualification and capacity to pay. It is also important for schools to hire persons who are qualified for the job.
3.10 Transfers and Re-Entry
Cases of re-admission of dropouts and transfers should be dealt with on individual basis as stipulated in the student transfer guidelines. All transfers must be handled through NEMIS. The receiving school will initiate the process on NEMIS and the releasing school will complete the process as approved by the Various MOE personnel.
3.11 Set Books
The Ministry of Education will supply English Literature and Fasihi set books to Form three students in all the public secondary schools in 2023 as guided by the syllabus requirements. School principals are therefore advised not to procure the set books for forms three and four. The enrolment data obtained on NEMIS will be used for this purpose. Funds to actualize the procurement and delivery of the Set books shall be retained from the GOK Subsidy to schools.
3.12 Annual procurement plan
As provided for in article 26 the Public Procurement and Disposal act 2015, all procurement shall be within the approved budget of the procuring entity (school) and shall be planned by the procuring entity concerned through an annual procurement plan. Consequently, all schools MUST prepare an annual procurement plan (Annex 1) and execute it after approval by the Board of Management.
3.13 Parental Obligations
Parents will continue to meet the following cost:
3.13.1 School uniforms.
3.13.2 Boarding related costs as reflected in the boarding school fees structure. ·
3.1.3.3 Lunch for the day scholars; and
3.13.4 Clear their fees balances for continuing students prior to January 2023. All County Directors of Education are required to ensure strict adherence to the guidelines on implementation of the FDSE programme and bring this information to the attention of all field officers and secondary schools principals under their purview.
Julius O. Jwan, PhD, CBS
PRINCIPAL SECRETARY