Table of content ……………………………………………………….......1
Definition of terms………………………………………………………....2
Introduction……………………………………………………………......3
Task force-vision 2030………………………………………......................4
Challenges facing education in Kenya……………………………………..4
Financing education……………………………………………………......6
Alternative methods of financing education…………………………….....7
Recommendation…………………………………………………………..14
Education task force on free secondary education………………………...15
Conclusion……………………………………………………………….....17
Reference …………………………………………………………………..18

Definition of terms
Education- Education is a form of learning in which the knowledge, skills and habits of a group of people are transferred from one generation to the next through teaching, training or research. A right of education has been recognized by some governments ( article13 of UN 1966 International covenant on Economic, social and cultural Rights) recognize the right of every one to an education.

Finance- related to money or how money is managed. Is a field that deals with allocation of assets and liabilities over time under conditions of certainty and uncertainty. Is also a science of money management. Key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time It can be broken down into 3 different sub- categories;

Beneficiary- a person/ group who receives money, advantage etc.

Introduction In Africa countries large investment is done in education and is a concern for many because on the one hand resources are scarce. However a greater concern in recent years is that the demand of education is feeds on its self’, this means that the more educated people get the more they want. This has resulted in powerful rise in job qualification as the output of education systems grow faster than the increase in job opportunity in the modern sector. For example, the secondary school has lost its value as passport to employment and higher institution certificates become essentials. This has continued to push students further up the ladder until the employment of a university graduate appears at the scene. However this does not stop demand for education because the risk involved in investing in more education by individual increase, so do the comparative rewards of the successful (Eshiwani 1993:130).
This ever growing demand for education has led to massive increase in spending in education all over the world. According to Prof. George Eshiwani, third world countries the rate of public expenditure on education has been greater than the increase in total public expenditure, which has in turn exceeded the rate increase of GNP. This has led to the question of how benefiting is education? In return this has led to attempts of making education more efficient. This has led to the emphasis on quality rather than quantity of education.
In most countries school is predominantly financed and provided by governments. Public funding and provisional also plays a major role in higher education.
Increasing primary enrollments in Africa has created a huge pressure to expand secondary and tertiary education; this is due to the demands of the growing middle class for their children's education.
According to All Global Meeting report 2010, between1999 and 2007 the net enrollments ratio in primary education rose from 80% to86% in developing countries. Gross enrollment in secondary schools education went up from 52% to 61% and higher education from11% to 18% , but the poorest countries in sub-Saharan Africa still lag behind, with same enrollment ratio at only 72%,34% and 4% respectively in 2001
TASK FORCE- VISION 2030 PG-12
EDUCATION SECTOR
Since independent in 1963 the education sector in Kenya has experience rapid expansion. Number of private and public primary schools and secondary schools increased due to increase in population and free primary education. Article 43(1) (f) of the constitution (2010) makes education a right of every Kenyan and underscores the importance of education in sustainable development.” Declaration of Jomtein conference on education for all of 1990 and Dakar conference of 2000, the Kenyan government adopt the policy of FPE and free day secondary education. Through this the government has realized rapid quantitative expansion of schools and other education facilities.
Challenges facing education in Kenya
Introduction of FPE in 2003 was intended to enable every child access primary education not every child was able to access, many children are still out of school. Also the introduction of free day secondary education was intended to increase enrollments retention and transition from primary to secondary schools. * Inadequate transition from primary to secondary schools. Inability of the poor to meet education costs for all their children is a barrier to education and leads to dropouts. * Shortage of classrooms (congestion).due to high enrollments the few available classrooms is congested. * Low cognitive achievement. * Inadequate teaching/ learning materials. The materials are few compared to large number of student leading to ineffectiveness. * Inadequate teaching staff- high teacher/ pupil ratio. There is shortage of teachers in most o these schools. The ratio of teacher to student is very high. * Inadequate capacity to both quality assurance and standards and education officers in the field. * Inefficient utilization of teacher .the teacher is not able to attend to every student in class due to the large numbers. * Limit support by stakeholders in the implementation of return. * Many developing countries do not have the financial or technical means to provide a quality basic education to every child. * External financing for education in GPE developing partner’s countries dropped by 36% between 2009-2011 and the outlook for the coming years is not positive. * The increasing youth population in low income countries, the global financial crisis, and the impact of climate change and commodity speculation further exacerbate these challenges and put enormous pressure on governments.
FINANCING EDUCATION
To finance education means to meet the costs of education: namely, capital expenditure and recurrent expenditure. The former refers to expenditure on such permanent features as new buildings, while the latter relates to what is needed periodically: for instance, salaries running expenses and equipments to sustain education. (Bogoko 1992, 210)
Education is the wealth of knowledge acquired by an individual after studying particular subject matters or experiencing life lessons that provide an understanding of something. Education requires instruction of some sort from an individual or composed literature. The most common forms of education result from years of schooling that incorporates studies of a variety of subjects. http://www.businessdictionary.com/definition/education.

According to (Bogoko 1992, 210) education is provided through public or private means. Public education is given in institutions owned and administered by public agencies such as central government and local authorities. In East Africa, it is provided and administered by the ministries of education and municipal councils. Private education on the other hand is acquired in profit- making schools in universities which are entirely owned and managed by private bodies and individuals. In most cases, such schools are regulated and inspected by the central government to ensure that education is being provided adequately
(Dimba 2009, 53) states that today there is increasing evidence of financial constraints. In many developing countries the proportion of government budget and (GNP) to education is declining. The private demands for education remain strong and governments are no longer willing to allocate an increasing share of public expenditure to education. (Dimba 2009) further explains that more effort is being put into alternative methods of financing education, particularly cost recovery and the redistribution of the financial burden of investing in education. It is very clear that changes in the system of financing educational investment are helping to reduce the pressure on public funds.
Who pays for education in Kenya? In Kenya education is largely financed by the government
Alternative methods of finance education in Kenya
Cost sharing: This is a situation where by the financing commitments in education are met by government and the school community. The government provides the administrative and professional services while the parents finance the provision of physical facilities. An example: the school community can cater for the construction of the teacher’s houses while the government buys textbooks and pays the teacher’s salaries. (Dimba 2009, 53-54)
In Kenya, the 1970s and 1980s was a period when the philosophy of cost- sharing in education took root, with parents and local communities assuming an increasingly more active role perhaps than that of the central government. (Bogonko 1992, 215)

Benefits and challenging of cost sharing
Cost sharing policies have provided a breathing space which has allowed governments to allocate resources to growth which eventually enable them to assume greater responsibility for financing education systems. (Penrose 1998)
Cost sharing makes students and families more discerning consumers and the universities more cost-conscious providers. Universities are becoming more responsive to individual and society needs as a result of cost sharing. A variation on this theme is directed at the alleged problem of academic malingering – that is, students alleged to be taking more years or more courses (or both) than are necessary because the courses and sometimes even the living expenses are acquired at a very low price. Furthermore, where students and their families are paying nothing either in tuition or for food or lodging, the students may be too tempted to remain in that status for a very long time, denying the society and the economy the advantage of their potential productivity and presumed enhanced usefulness, whether to themselves or to the state. However, with a little cost sharing—i.e., when both parents and students are paying something and sacrificing other needs--there is at least presumed to be a much greater incentive on the part of the student to study hard and to graduate “on time.” According to (Penrose 1998) cost sharing does not provide a permanent solution to the problems of financing costly education services in countries with weak fiscal management which have education policies which make unrealistic demands on fiscal and household capacity. The issue of cost sharing in education might exclude potential students from poor, rural or otherwise disadvantaged families from attaining the level of education they would wish to. This can happen just because even getting the little which they are supposed to contribute at times can be very challenging. As a result; the sons and daughters of the wealthy will always have high chances of attaining education at a low price. The disadvantaged students which the tuition is supposed to help will always be left behind Community financing The community takes on the responsibility of setting up a school and providing all the facilities. This does not only release the government from pressure on public funds but also helps the community to have a stronger sense of owning the schools. The parents work hard towards the development and protection of the school making sure that it progresses well in all aspects.
Some people will argue that it is the government’s responsibility in each state to finance education. Others will contend that it is both the government’s and the people’s responsibility. (Bogonko 1992, 232) states that neither will be wholly wrong depending on one’s perspective of the sources of government revenue, or what the government and the people mean. If the government derives its revenue from the peoples’ taxes and the people are the government and vice versa, then it is indeed the government’s responsibility to finance education as a social service to the people. On the other side one could argue that, not everybody pays direct tax and that, in any case, what is taxed is a tiny portion of one’s gross income and that, therefore the government alone cannot be left to shoulder all the education needs of the people from inadequate resources. People have largely to supplement the government’s efforts. When however all is said and done, it is the work of the government to consolidate all efforts, public or private, to ensure that enough and quality education is given to the people.

Private financing
The private financing of education utilizes fees as the major source of income in schools. The beneficiaries of the education for example the family and the individuals meet the full cost of education. This enables the government to have less pressure and direct the funds to some other sectors rather than education. (Dimba 2009, 54)
Benefits and challenges of private financing
Private education offers the chance for a child to grow in terms of personal development and confidence.
Many private schools are highly academic and are ideal for a motivated, academic student. They aim at providing a good all round education for children on a variety of levels. Personal development is highly valued and children get more individual attention in the private sector. The downside is that students at private schools do not mix with a wide mixture of other children from different backgrounds and may have a narrower perspective on a range of social issues.
Another disadvantage which is a major one is cost. Many parents and children are at a disadvantage because of the cost of fees which are usually very high. This forces some parents to live on loans and at times put a lot of pressure of good performance to their children.
Bursaries
Bursaries are normally given to students on grounds of financial hardships. Those who are not able to afford the fees are given an opportunity to prove their competences in education. Bursaries may be awarded by the government, institutions or individuals. It is apparent that the current bursary provisions should be enhanced to sustain deserving students within the system. According to (Onsomu 2006), the government of Kenya has instituted decentralized systems aimed at channeling resources to local levels for poverty reduction and regional development.
Loans
Loans are provided by government agencies, commercial banks and other financial institutions. Student’s loans provide a source for money when the students need it. This is paid in the future when the graduates are enjoying the financial benefits of higher lifetime earnings.

(Ajayi, 1996, 159) confirms the fact that; it is essential to create students loans schemes to ensure that, by providing needy ones with access to financial credits, qualified students are not kept out of higher education on financial grounds
(Dimba 2009, 55) further underlines the following arguments in favour of loans:
Once loans start to be repaid, funds will be released for the other levels of education or for other areas of investments.
The students will eventually receive large financial returns from their higher education, so they should repay the cost of that education to the taxpayer who on average is less rich than they will be. Loans shift the cost of higher education to the students, who will earn well in future and away from her poorer parents.
Having to pay for their education will make students more serious about their studies and they will receive a lot of encouragements and motivations from their parents.
The loan scheme will reduce the demand for higher education which in many countries is excessive because of very high individual rates of return brought about in large part by state subsidies and grants.
Universities will be able to improve the quality of their work and the relevance of the course offered. They will be able to improve the quality because they will have the option to raise their fees if necessary.
Arguments against loans
Society benefits from the student’s higher education so it should pay. The benefits are measured by using the student’s higher earnings, as a yardstick of his/her increased productivity. There are other benefits to society also that are not reflected in his higher earnings e.g. Innovations improved hygiene etc. Any increased taxes he pays will also go to society.
The earnings foregone by students at this level are big enough to them without imposing a debt on them.
Students who receive loans need to be busy searching for the loans and hence do not concentrate on their studies.
In developing countries, the administrative costs of such scheme tend to be high. Proper records are not kept and many students do not repay the loan. E.g. in Kenya since its beginning in 1974, the government had given approximately 6 billion to university students but recovered only Kshs. 250 million by 1996.The higher Education Loans Board was established to speed up the recovery process.
The loan scheme does not help to redistribute income in favor of the poor. Many students who benefit from the scheme are those who are better off in society. The poor are left out since they are underrepresented at this level of education. The above argument is supported by research findings. For example, according to the research done by Enos H.N. Njeru and John Orodho. 59p. ISBN 9966-948-98-8. The study followed exploratory approach using descriptive design. In four provinces randomly picked. Target was the Ministry of Education and technology staff, school based education staff and opinion leaders. Data gathered through semi structured interviews, questionnaire and focused group discussion. The data were analyzed using SPSS. The findings indicated that the patterns and trends of education financing in Kenya in cooperate the cooperation between the state, house hold and the communities. The research also found out that the financing of secondary education had turned problematic, that the parents had to pay due to an increasing large proportion of the cost.
The research also found out that the government financing cater for the teacher’s salaries and allowances at the expense of development which would be essential for improved physical facilities. Cost sharing strategy had a negative impact on the poor and vulnerable households because they don’t enroll their children in school or they are unable to sustain them due to inability to meet the cost. This has resulted in an inadequate provision of learning facilities to enroll, poor quality education and high dropout rates
Bursaries on the other hand is hand capped by inadequate guidelines with the regard to the amount to be allocated per student, poor criteria for selection of genuinely needy student, inadequate awareness about the bursaries existence and operations, limited funds hence poor coverage, poor co-ordinations and delays in fund disbursement, lack of monitoring mechanism by the ministry of education at the school and high levels. This has resulted in lack of transparency and accountability

Recommendation
Either to abolish fee levies charged to parents or ensures full proof enforcement of the guidelines to eradicate loopholes.
Increase current bursaries funds
Put in place clear guidance regarding eligibility and the social economic categories to benefit from the bursary scheme, the amount to be allocated per student and monitoring mechanism to ensure accountability and transparency.
Individual schools with the consultation with the stake holders to work out ways to evolve a fee waiver mechanism and income generating activities at the school level to raise funds for various purposes e.g. supplementing student’s fee etc
Education task force on free secondary education report 30th October 2014
In October 30 2014 President of Kenya Uhuru Kenyatta received a report proposing free secondary education. The report by the task force on free secondary education was given by former assistant minister of education Kilemi Mwaria who has been appointed to be presidential advisor on education Recommendations
Introduction of free secondary education from January 2015
Registration of new public schools and proper regulation and expansion of those in existence
Automatic progression from primary to post primary education
Proposed ways on how the government can achieve free secondary education 1. Government to meet the cost of learning material, operational costs and meal. 2. Government to meet the cost of teaching and learning materials and related operational cost, excluding meals.

Conclusion
We concur with the constitution of Kenya and the vision 2030 that education and training is the vehicle that will drive Kenya into middle income economy. However, the challenge is on the government on how to finance education because despite the fact that there are social benefits of education, which may include payment of tax, we are faced with such problems as brain drain whereby people go to look for job abroad hence the social benefits are interfered with. We support the burden of financing education should be shared between the beneficiaries, private