LOW CAPITATION GRANT: Schools set to close early this term

Schools struggle with budget shortfalls after Govt cuts on Capitation Grant

Kampala, Uganda | THE INDEPENDENT | Many schools will close early this first term because of a shortfall in their budgets that has left many schools grappling with rising costs and insufficient resources to maintain day-to-day operations.

Schools across Uganda are facing budgetary and operational challenges after receiving less capitation grant funding than what was originally promised by the government.

Several headteachers interviewed by this publication confirmed that their schools received lower-than-expected disbursements. One headteacher, who requested anonymity, said she initially suspected an error in her school’s allocation. However, discussions with colleagues revealed that the issue was widespread.

“At first, I thought it was a mistake, but after speaking with other headteachers, it became clear that the reduction is across the board. It seems the government has cut the capitation grant, and we are now receiving less than what was budgeted,” she noted.

According to Oyam District Education Officer, David Adea, schools have only received 18,000 Shillings per pupil this financial year, despite the government’s earlier commitment to allocate 20,000 Shillings per learner under the Universal Primary Education (UPE) program.

“Over the years, the government had gradually increased the capitation grant, which was commendable. However, this year, the allocation dropped by 2,000 Shillings per pupil. That reduction has created a significant funding gap, especially considering how essential the grant is for running schools,” Mr. Adea explained.

He also noted that no official communication has been made to district education officials explaining the cause of the shortfall.

The issue was substantiated in a recent report submitted to the Education and Sports Committee of Parliament. The committee confirmed that capitation grants have been underfunded in the current budget cycle.

“The Committee was informed that, under the current budget, capitation grants are underfunded. For Universal Primary Education, the grant is currently UGX 18,000 per pupil per year, rather than the committed 20,000 Shillings,” reads part of the committee’s report.

The situation is similar in secondary education. Under the Universal Secondary Education (USE) program, schools are receiving 160,000 per student annually, which is 15,000 less than the promised 175,000 Shillings.

To bridge this gap, the Ministry of Education and Sports requires an additional 25.97 billion Shillings to meet the full capitation grant targets of UGX 20,000 per UPE pupil and 175,000 Shillings per USE student.

The capitation grant is a critical component of public education funding in Uganda. It is meant to cover costs such as instructional materials (35%), co-curricular activities (20%), school management (15%), administration (10%), and contingency expenditures (20%).

However, due to the inadequate funding, some schools, particularly in urban areas, have resorted to collecting additional Parent-Teacher Association (PTA) fees to bridge financial gaps, despite policies restricting fee collection under free education programs.

Educationists have long called for an increase in the grant to match the growing needs of schools. The National Planning Authority (NPA) has also recommended an upward revision of capitation grants to enhance school performance and financial sustainability.

According to the NPA’s education sector issues paper, the recommended annual per-pupil grant should be 63,546 shillings for pre-primary and primary learners, 532,720 shillings at lower secondary, and 885,440 shillings at upper secondary levels.

The NPA also advised that allocations should be informed by key factors such as student enrollment, inflation rates, the socioeconomic status of the school population, and performance indicators, including attendance, completion, and transition rates.

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