ABSTRACT
The primary purpose of this study was to investigate the impact of school fees default on the financial capacity of secondary schools in Kiambu District. A sample of 5R secondary schools was selected using stratified random sampling method as the subjects were stratified into five categories; national schools, provincial hoarding, provincial day, district boarding and district Day. A self-report questionnaire was administered to the principals of secondary schools in Kiambu District and the response rate was 89.65%. Descriptive statistics were used to analyse the data; percentages and frequencies were used to describe the variables. The findings of the study indicate that there are significant relationships between the school fees default and the financial capacity of secondary schools. There are more cases of school fees default in boarding schools han in day schools. Boarding schools have more vote-heads over-spent while day schools have more overheads underspent. The size of the school determines how well the school is able to finance its operations under the controlled fees guidelines. A two-streamed day school is indicated as optimal size that can comfortably finance the school's operation while three-streamed Boarding school is indicated as an optimum size. There are many causes of school fees default in secondary schools but low level of income is cited as most common in all institutions. There are other sources of funds for schools but these are indicated as 1 ot adequate to offset the deficit in fees default. The study concludes with a number of recommendations, top on the list; there is need to look for alternative sources of funds for schools if education in Kenya has to address itself to the national objectives like eradicating poverty and providing skilled manpower for economic development.
