Schools face fees review ban over audits

Schools that fail to comply with mandatory internal and external audit requirements will not have their applications for fee and levy reviews processed, under new measures introduced by Government to strengthen financial accountability in the education sector.

The directive is contained in Secretary's Circular Number 9 of 2026, issued by the Ministry of Primary and Secondary Education and signed by the ministry's secretary, Moses Mhike.

Effective from August 5, 2026, the circular makes regular risk-based internal audits and annual external audits compulsory for all Government and registered non-government schools.

The Ministry said the measures were designed to promote transparency and accountability in the management of school funds.

"All SDA, SDC, and SSF funds managed in terms of the above legal framework shall be subject to mandatory governance risk-based regular internal and external annual audits," the Ministry said.

For Government schools, School Development Committee (SDC) and School Services Fund (SSF) accounts are classified as statutory funds and must undergo regular risk-based audits by Ministry internal auditors and other Government internal auditors.

External audits must be conducted at least once every financial year.

Schools will also be required to prepare management action plans responding to audit findings and provide monthly updates on progress made in implementing recommendations.

The Ministry said any exemption from the audit requirements would require its approval, following a request by the school head in consultation with the relevant Responsible Authority.

Registered non-government schools have likewise been directed to comply with their registration conditions under the Education Act and subject their accounts to regular risk-based internal audits and annual external audits by qualified independent auditors.

Audit reports submitted to the Ministry must be accompanied by management implementation plans outlining how identified shortcomings will be addressed.

On funding, the Ministry directed established Government and registered non-government schools to budget for and meet their internal and external audit costs in consultation with their respective Responsible Authorities.

Schools will not, however, be required to pay audit fees where the work is carried out by Ministry internal auditors.

Instead, they will be responsible for travel and subsistence costs calculated according to prevailing Government rates.

The Ministry also directed that payments for internal audit-related expenses be channelled directly to the relevant Provincial Offices to safeguard the independence and objectivity of its auditors.

The most significant change is the linking of audit compliance to applications for school fee reviews.

"With immediate effect, the Ministry will not consider, process, or approve any application for a school fees review, adjustment, or maintenance of existing fees or levies from any school that fails to produce a current annual audit report," the Ministry said.

It warned that applications from schools that fail to meet the audit requirements would automatically be disqualified.

The circular repeals and replaces Secretary's Circular Number 9 of 2015, while the Ministry retains final authority over its interpretation and implementation.

The new measures are expected to strengthen oversight of school finances and promote greater accountability in the management of funds contributed by parents, guardians and other stakeholders.