The Teachers Service Commission wants all transferred secondary school heads to be investigated over funds misappropriation, which was unearthed last month following their transfer.
The commission has written to the Education ministry calling for the investigations.
The TSC chief executive, Dr Nancy Macharia, said several principals who were transferred to new stations had complained to the commission about the issue.
She noted that the new principals of the affected schools had detected that their transferred colleagues had "looted" their former stations leaving behind empty bank accounts and heavy debts.
Dr Macharia said allegations had been raised against St Mary's Egoji Girls, Nyamira Girls and Kapsabet Girls.
In a letter dated January 26, 2018 to Education Principal Secretary Belio Kipsang, Dr Macharia calls for urgent investigations into the corruption allegations.
"It has come to the attention of the commission that certain unscrupulous heads in collusion with members of the boards of management were involved in financial malpractices through misappropriation or embezzlement of school funds and institutional resources," she said.
"The purpose of this letter is to request you to conduct a comprehensive financial audit of the above schools and all other post-primary institutions to determine the veracity of the allegations," the letter reads.
Dr Macharia said in the event the audit establishes financial irregularity and/or impropriety on the part of school heads or any employee of the commission, the ministry should provide reports and documentary evidence to facilitate appropriate disciplinary action.
Last month, the commission transferred 557 principals and deputies to new stations.
The TSC said the transfers had been effected in a new delocalisation programme meant to promote national integration and ensure that fresh ideas are infused into institutions after long-stay of some head teachers in some schools.
During the reshuffle, 31 principals of national schools were moved to new stations.
At the extra-county boy schools, 78 teachers were moved while the same number was shifted in the girls schools of the same category.
Eight principals were posted to national schools that were operating without substantive heads.
In counties, 134 vacant positions were filled while 19 heads were moved at technical institutions.
Principals involvement in misappropriation of funds is not new.
A report by Ethics and Anti-Corruption Commission in 2016 revealed that head teachers were issuing wrong enrolment figures, flouting procurement procedures, taking bribes and hiding crucial audit documents to steal free education funds.
The report also unearthed massive irregularities in the procurement of textbooks for public schools, with head teachers playing a key role in the racket.
The fraud ranged from forged signatures, delivery of phantom books, overpricing and single-sourcing of suppliers by instructional materials selection committees at the school level.