This paper investigates how terrorism alters human capital investment through perceived uncertainty. Using various estimators, we identify a negative causal effect of terrorism on Kenyan school enrolment. Among these, we exploit al-Shabaab's revenue streams and position in the al-Qaeda network to predict attacks. To isolate the significant contribution of behavioural responses to changes in the expected risk and returns to schooling, we use finely geo-coded data on children's closest schools and border discontinuities in educational provision. We further estimate the impact of terrorist threats and media coverage of attacks. Finally, we evaluate the relative importance of perceived risk and expected returns to schooling within a structural model, and use it to predict individuals' earnings loss arising from the reduction in schooling.