The aim of Free Primary Education programme in Kenya is to provide opportunities, especially for the individuals from low economic background. However, this goal is achievable if the funds sourced and disbursed to public primary schools are effectively utilized. The purpose of this study was to investigate the factors influencing the utilization of Free Primary Education funds in public primary schools within Nakuru Municipality. The findings show that all head teachers, had undertaken some form of financial training to enable them effectively utilize Free Primary Education funds. However, the level of Free Primary Education funds utilization in public primary schools was inadequate. The main factors affecting the utilization of Free Primary Education funds were: insufficient funding, delay in disbursements, high pupil enrolment levels, high cost of materials, inadequate teaching materials, lack of teacher motivation, inadequate teaching staff, and illiteracy of some committee members. The study recommends that the Government of Kenya, through established structures in the Ministry of Education, should mobilize resources to mitigate administrative factors arising from this study.