Abstract: The study assessed the guidelines followed in the use of capitation grants and their influence on management of secondary school in Arusha District Council. Specifically, the study highlighted the guidelines followed in the allocation and the use of capitation grants and strategies for improving the use of capitation grants for effective management of public secondary schools in Arusha District. Contingency Theory guided the study. The study employed mixed approach methods, especially convergent parallel design. The target population of 1120 comprised 1050 teachers, 35 school heads and 35 board chairpersons. The sample size was composed of 105 teachers, 9 school heads and 9 board chairpersons. Validity and reliability (r= 0. 831) of instruments was determined before they were administered to the target sample. Data were collected by using questionnaires and interview guide and were analysed using descriptive statistics for quantitative data in the SPSS version 25, and qualitative data were analysed through the content analysis method. The study found that grants are often allocated based on students’ enrollment to ensure equitable distribution of resources; and schools must submit periodic financial reports to the relevant education authorities detailing how the grants have been utilized. In conclusion, the guidelines for allocating capitation grants are critical particularly in shaping the financial and administrative practices of public secondary schools. It was recommended that there is a need for the government to train school heads, develop and disseminate clear and detailed guidelines for grant utilization to ensure all schools understand the requirements and expectations.

Abstract: This study investigated the effectiveness of utilization of capitation grants and its influence in improving educational facilities in public secondary schools in Arusha city. Specifically, the study examined the shortcomings on the effective utilisation of capitation grants in public secondary schools and the possible measures to address shortcomings on the effective utilisation of capitation grants in improving educational facilities in secondary schools. This study was built on Contingency Theory. Descriptive research design and a mixed research approach were employed. The target population consisted of 963 teachers and 29 heads of school. Stratified sampling was used to select 96 teachers, and purposive sampling was used to select 8 head of schools. Questionnaires and interviews were used for data collection. Validity of research instruments was ensured by research experts. Reliability was ensured by Cronbach Alpha method which gave r=0.922. Trustworthiness was observed to ensure reliability of qualitative instruments. The findings revealed inadequate capitation grants, poor management, political interference, and lack of accountability as the shortcomings that hinder effective utilization of capitation grants allocated leading to dissatisfaction in management, teaching facilities and infrastructure. The study suggests increasing capitation grants, enhancing management, accountability, securing political support, improving transparency and monitoring as the necessary measures. In conclusion, schools should struggle to effectively manage inadequate capitation grants to improve educational facilities in public secondary schools. The study recommended that the government through MoEST should increase the amount of capitation grants to enhance financial management in order to maximize the provision of educational facilities in public secondary schools.