Court Ruling on Additional Fees and Levies by Schools

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the court ruling on extra fees and levies charged by schools. We also highlight the progress of the link train service that will connect the SGR Mombasa terminus and the CBD.

Court Sets Condition on Charging of Extra School Fees

The High Court in Nairobi has ruled that schools cannot charge extra levies without the approval of the Cabinet Secretary in charge of the Education docket.

In his ruling, Justice Lawrence Mugambi noted that charging of extra levies, such as remedial charges, is not legal even if they are approved by the Parent Teacher Associations (PTAs).

Without the CS approval, the judge reiterated that the extra charges were illegal, with schools expected to comply with the legal process when charging parents more.

Further, Mugambi reiterated that no student should be denied a chance to attend class and schoo activities if their parents fail to pay the fees.

"Section 29 (2) (b) of the Basic Education Act stipulates that any additional charges in a public school can only be made with the approval of the Cabinet Secretary in consultation with the County Education Board, and further declares that no child shall be refused to attend school because of failure to pay such charges," the judge explained in his ruling.

Mugambi made the ruling following a case that was filed by a parent at St George's Girls' Secondary School in Nairobi.

According to the parent, the student was denied entry to class for failing to pay remedial fees and extra charges that were to go towards the construction of a dormitory.

However, the judge stated that he could not declare PTA-led initiatives, which require governments to support school projects, unconstitutional.

"They can agree to support the school infrastructure development or any other programme in the school, including those that are meant to motivate the teachers and the students under the performance improvement programme, and this, I see no justifiable ground for declaring such an initiative unconstitutional," Mugambi added.

Some of the extra levies charged by schools include remedial classes, motivation of teachers, special meals, and support for school infrastructure.

More often than not, these additional fees can range from Ksh2,000 to Ksh25,000 in some instances.

Kenya Railways Update on SGR Link Train to Mombasa CBD

Kenya Railways has revealed the finalization of the Meter Gauge Railway Line that will link the Mombasa SGR terminus and the Mombasa CBD.

KBC, in its report, detailed that the project was ready to be launched.

Kenya Railways Managing Director (MD) Philip Mainga announced that the project had experienced delays owing to issues with land acquisition.

Once launched, Kenyans using SGR will be able to use the train service to get to Mombasa CBD. Currently, Kenyans rely on taxis and buses to get to the CBD. This is often costly for most travellers.

Also Read: Doctors, Hospitals Face Up to Ksh50 Million Fines in New Bill

MPs Raise Concern Over Delays in Pension Payments 

The National Assembly Public Debt and Privatisation Committee raised concerns over delays in the payment of pensions.

In a report by the Business Daily, the committee warned that these delays and occasional defaults are causing financial distress to thousands of retirees. 

The committee noted that only 61 percent (Ksh136.9 billion) of the Ksh223.14 billion allocated for pensions in the 2023/24 financial year had been disbursed by the end of April. 

This has led to uncertainty over whether the remaining Ksh86 billion will be paid before the end of the fiscal year on June 30.

The challenges have been attributed to cash flow shortages caused by revenue underperformance and increasing foreign debt repayments. 

IMF Dispatches Team to Kenya 

‍Bloomberg has reported that the International Monetary Fund (IMF) has dispatched a team to survey the impact of corruption on public finances in the country.

According to the report, the team from the international financial organization will be in the country for two weeks for the exercise.

The study is set to examine graft risks in the country’s fiscal management and help the government reinforce its anti-corruption capacity ahead of future programme agreements.

The team will also identify the gaps in the governance of the Central Bank of Kenya (CBK) and the laws in the country.

‍NSSF Responds Over Ksh16 Billion Audit Query

NSSF has dismissed a report by the Auditor General, who exposed the loss of billions at the financial institution for the financial year ending June 2024.

As detailed by Citizen Digital, the report had flagged questionable expenditures and failed investments worth billions. 

For instance, the AG criticized for investing Ksh12 billion in government bonds, with premium payments exceeding Ksh500 million and subsequent capital losses totaling Ksh272 million due to bonds sold at a loss.

The audit report also noted that there were idle properties, with assets worth Ksh4.02 billion lying unused in Nairobi’s CBD. The Fund was also found to have difficulty collecting rent arrears totaling nearly Ksh14 million from eight tenants, some protected by court orders. 

Consequently, the Fund, through its CEO David Koross, dismissed the audit’s conclusions as “inaccurate” and “not credible.” Koross defended the Fund, highlighting that NSSF received an unqualified audit opinion for the first time, signifying a clean financial record. 

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