The Kyrgyz Republic has seen a rapidexpansion of public spending on education in recent years,yet the sector continues to be plagued by a number ofchallenges. Efficiency of spending is low across theeducation system, and sustainability of sector financing isthreatened by large outlays on wages following rapid wagegrowth during 2010-2012 and high shares of resources goingtoward food and utility costs. Lack of investment in thenecessary teaching and learning materials contributes to loweducation quality, with over 80 percent of 15 year oldsscoring at "functionally illiterate" levels in the2009 PISA assessment. Coverage remains low in pre-primaryeducation, while equity of education service provisionvaries widely across localities and social groups. Thepractices surrounding education sector governance could alsobe improved and brought in line with internationalstandards. This chapter is composed of six sections. Sectiontwo presents an overview of the Kyrgyz education sector,covering its structure and governance, demand for educationservices, and recent spending trends. Section threediscusses disparities in access, quality, and publicspending across localities and social groups. Section fouranalyzes the efficiency and sustainability of educationsector spending. Section five looks at determinants ofeducation quality and options for their improvement. Sectionsix concludes and offers concrete policy recommendations forsector reform.