The DfID programme was aimed at helping Kenyan schoolchildren
The UK government has frozen funding for free primary education in Kenya until an investigation into fraud allegations has been carried out.
The Department for International Development said no more money would be released until $1m (£615,000) thought to be missing had been accounted for.
Kenyan media suggest the total of the alleged missing funds may be larger.
The money was supposed to go towards building new classrooms and buying text books in impoverished parts of Kenya.
The funds are said to have disappeared earlier this year.
A DfID spokesman said the department "does not tolerate fraud in its programmes" and it welcomed an investigation into the allegations by Kenyan authorities.
The spokesman added: "We have not suspended our aid programme, but no new funds have been transferred to the Ministry of Education in Kenya since the matter was uncovered. We will consider what action to take once the Kenyan government has completed its investigation.
"Our support for education in Kenya has helped get one million more children into school over the past five years, and we remain committed to improving education for the country's poorest children."