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Public investment in education claims a considerable share of national resources in most developing countries. The relative poverty in developing countries makes the provision of education service a more burdensome exercise in terms of finances, human capital and other resources. Besides the direct cost, there are sizable private and social indirect costs that are incurred whenever investments are made in education. Due to these indirect costs and the presence of fiscal constraints on education expenditures, there is as in other areas of government spending, a need for efficient resource utilization in educational sector. With the limitation on educational resources in Kenya as is in other developing countries, there is need to evaluate resource combinations to ensure that they are best utilized to maximize output. This must be assessed through a careful analysis of educational inputs with the fundamental objective of establishing the major determinants of educational output.