Win for Gov’t as Court of Appeal reinstates university funding model

Over 400,000 university students left in uncertainty following the suspension of the new funding model, have been handed a fresh lifeline after the Court of Appeal lifted the freeze on its implementation.

In a ruling delivered on Wednesday, the Appellate court overturned a 2024 High Court decision that had deemed the student-centered funding model discriminatory and unconstitutional. The verdict now paves the way for its immediate reinstatement.

The court has hence directed the Attorney General, the Higher Education Loans Board (HELB), and the Kenya Universities and Colleges Central Placement Service (KUCCPS) to publicly outline the funding framework.

The court also directed them to publicize the funding framework to all universities, current and incoming students as well as applicants within the next two weeks.

In what appeared to be a safeguard for students, the court went a step further, directing the three institutions to inform both current beneficiaries of the funding model and new applicants that the framework could be subject to change, depending on the final outcome of the appeal.

This move ensures transparency and prepares students for potential shifts in their financial support as the legal battle unfolds.

While filing their appeal, the Universities Fund and HELB argued that the ruling invalidating the new funding model had triggered a stalemate in the education sector, making it impossible to disburse payments to students.

The Universities Fund defended the student-centered funding model, stating that it provided a more cost-effective and sustainable approach to financing higher education.

Launched by President William Ruto in May 2023, the model dubbed the Variable Scholarship and Loan Funding categorizes students into different bands based on a means-testing instrument.

Those classified under Band 1 qualify for up to 70% government scholarships, while students in Bands 4 and 5 receive 40% and 20%, respectively.

The model was designed to prioritize financial aid for the most vulnerable students while ensuring a fair distribution of resources.