Treasury CS John Mbadi has revealed that the Teachers' Service Commission (TSC) and school capitation funds are among the key areas under review in the ongoing International Monetary Fund (IMF) anti-corruption diagnostic mission to Kenya.
Speaking during a discussion on Saturday, June 4, Mbadi revealed that the government had requested the IMF diagnostic as part of its efforts to strengthen public financial management and root out graft.
IMF was already in the country and concluded the diagnostic on June 30, with the final report expected in October 2025.
''We feel education, which is taking the largest chunk of our budget, needs to be looked into in terms of strengthening the systems. Capitation: Are we paying for students who are in school, or are we paying for students who exist on paper?'' Mbadi said.
The CS added that the TSC payroll, which consumes over Ksh400 billion annually, is also under scrutiny.
“We have a huge payroll of about Ksh400 billion annually for paying teachers. We need to ensure it is clean, efficient, and free from ghost workers or inflated figures,” he said.
The Kenyan government had requested the IMF to assess it as it aims to identify corruption vulnerabilities and recommend reforms across key sectors, including education, health, procurement, and infrastructure.
Mbadi revealed that the government had voluntarily suggested areas for the IMF to examine, including the health sector and infrastructure spending, since they understood the system better and knew where to focus.
IMF is expected to release its report on Kenya in October; however, Mbadi revealed that while he supports the report being publicised, the decision lies with the Cabinet.
“From where I sit, I don’t see why it shouldn’t be published. But that will be a Cabinet decision,” Mbadi clarified.
The IMF Mission took place from June 16 to June 30 under Rebecca Sparkman. The program brought together experts from several IMF departments, including Fiscal Affairs, Legal, Finance, Monetary and Capital Markets, and Strategy, Policy and Review, alongside representatives from the World Bank.
The team held a wide range of meetings with both government institutions and non-state actors to gain a holistic view of governance challenges across Kenya’s core public sector functions.
