This paper examines the role of the Kenyan state in regards to the historical development and expansion of the educational system and the current educational challenges facing the country. Like other post-colonial states, the "fragile" Kenyan state has been severely constrained in its efforts to build a modern and meritocratic educational system. In tracing the government's educational activities and policies from independence to the present, it becomes clear that the state's early inability to control demand for education is largely responsible for two contemporary problems: the extremely competitive nature of the educational system and the serious imbalance between education and the labor market. The nature of these problems and their implications for educational eguity and school demand in Kenya ale explored in detail. Data from a survey of Kenyan households, focus group interviews, and newspaper accounts inform this discussion and illuminate some of the most critical educational challenges facing Kenya today.