Uncertainty rocks varsities as court suspends new funding model

President William Ruto’s new university funding model faced a major setback on Thursday after the High Court suspended its implementation, now in its second year.

This decision leaves more than 250,000 students uncertain about the funding of their university education, potentially forcing the government back to the drawing board despite promoting the model as part of its plan to reform higher education in the country.

Questions also linger about the future of public universities—if the orders remain in place—regarding how they will support students when institutions resume for the second semester in January.

However, the court order offers relief to critics of the funding model, which has recently faced strong opposition from students, university staff, and civil society groups.

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Justice Chacha Mwita issued the conservatory orders following a petition filed by the Kenya Human Rights Commission (KHRC), the Elimu Bora Working Group, the Students Caucus, and a citizen, Boaz Waruku.

They argue that the model is discriminatory and excludes thousands of students from accessing higher education.

The court barred Education Cabinet Secretary Julius Ogamba, the Attorney General, the Higher Education Loans Board (HELB), Universities Fund Kenya trustees, and the Kenya Universities and Colleges Central Placement Service (KUCCPS) from implementing the funding model until the case is resolved.

“Conservatory orders are issued against the respondents, their servants, agents, and employees from implementing the new education funding model until the hearing and determination of the petition,” ordered Justice Mwita.

While issuing the orders, the judge noted that the case had been delayed due to the government’s failure to submit their filings on time.

Justice Mwita scheduled a mention of the case for 16 December 2024.

Under the new model, students receive financial aid for their university education through loans and scholarships to cover tuition fees. This differs from the previous system, where universities received block funding that did not correspond to the number of enrolled students.

The model divides students into five bands according to their financial capacity.

A document presented to the National Assembly’s Education Committee in September revealed that 234,811 students currently receive university aid under the new model.

The document shows that 113,075 students applied for funding in 2023—the first year of the model’s implementation—while 121,736 students applied this year.

It remains unclear whether the suspension will lead to a return to the previous model, which was phased out in September 2023.

Opposition to the new funding approach prompted President Ruto to establish a 129-member committee in September to review its implementation. The committee was inaugurated last week.

According to a gazette notice, President Ruto stated that the team would be divided into four subcommittees, each tasked with different roles, including reviewing the new funding model for universities and Technical and Vocational Education and Training (TVET) institutions.

One of the subcommittees will focus on appeals related to the categorisation of students  for scholarships and loans. The team will also examine the structure of student loans and the cost of university programmes, potentially leading to a reduction in tuition fees.

“Now, therefore, I, William Samoei Ruto, President of the Republic of Kenya, in exercise of the powers conferred upon me by the Constitution and the Statute Laws of the Republic of Kenya, do order and direct that the National Working Committee on the Review of the New University Education Funding Model is hereby established,” read the gazette notice.

In the ongoing court case, the petitioners argued that implementing the model would harm hundreds of thousands of university and TVET students, as well as their families.

They contend that the model will exclude many students from disadvantaged backgrounds from accessing university funds.

“The Variable Scholarship and Loan Funding (VSLF) model, also referred to as the new Higher Education Funding Model, is unconstitutional and violates several fundamental constitutional principles,” the petition states.

The petitioners added: “These violations include the infringement of fundamental rights and freedoms, implementation based on an illegal presidential directive, execution without a legal framework, and non-compliance with public fiscal responsibility principles.”

The petitioners further argued that the new system has prevented brilliant students under the age of 18 from joining universities or receiving funding due to their status as minors.

“Previously, these students could easily use their parents’ details to access funds in line with their right to education,” they argued.

The petitioners claimed that while President Ruto had a mandate to reform the system, he did not follow due process when launching the model.

The KHRC asserts that the presidential directive introducing the funding model is illegal, unconstitutional, and an attempt to override Parliament’s legislative role as outlined in Article 94(5) of the Constitution.

“The presidential directive is, therefore, ultra vires and breaches students’ constitutional rights, which this honourable court must urgently address,” said the commission.