The Impact of Free Primary Education on enrollment in Kenya

This paper examines the impact of the Free Primary Education policy in Kenya, which eliminated primary school fees starting in January 2003. Using panel data with information from 2000 to 2005 from a health and demographic survey conducted in three Nairobi slums and two non-slum areas, this study examines the impact of this policy change on school enrollment and equity. It presents a framework in which the policy change impacts enrollment rates by influencing both the costs and benefits of primary schooling and examines these impacts on enrollment through both econometric analysis and descriptive
evidence. Although the policy has reduced the cost of primary education and therefore would be expected to increase enrollment and decrease wealth biases in education, the paper finds that gains in enrollment and equity are small and may not be lasting. This result is postulated to be driven in part by the fact that elimination of fees has resulted in perceptions
of reduced educational quality, limiting the benefits of primary schooling and therefore restricting enrollment growth.