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Students left in limbo as Court allows Ruto’s controversial funding model

1 week ago
2 Min Read

The Court of Appeal has delayed a High Court order that overturned President William Ruto’s university finance plan.

The orders now allow the government to resume the Variable Scholarship Loan Funding Model, which is a major victory for Ruto. The Variable Scholarship Loan paying Model is the government’s new strategy for paying university and TVET students.

It will replace the previous Uniform Funding Model, which provided equal support to all students regardless of socioeconomic circumstances when it is implemented in 2023. In a decision issued on Wednesday, March 26, the appeal court upheld the High Court’s verdict, allowing the contentious financial system to continue in place in the interim.

The court ordered the Attorney General, the Higher Education Loans Board (HELB), and the Kenya Universities and Colleges Central Placement Service (KUCCPS) to inform universities, colleges, and students about the funding scheme within 14 days.

“The execution of the Judgment and orders of the High Court in Petition 412 of 2023, issued on 20th December 2024, is stayed,” the court ruled.

The legal struggle arises from a High Court decision that overturned the government’s new funding scheme, which was implemented in May 2023, on the grounds that it was discriminatory and without adequate public engagement.

Justice Chacha Mwita held that the model violated the Universities Act by classifying students according to their financial capabilities, school type, and age. HELB and the Universities Fund appealed the verdict, claiming that it hampered their ability to disburse funding, placing universities and students at risk.

Former HELB Acting CEO Mary Muchoki cautioned in an affidavit that the decision could result in the indefinite shutdown of higher education institutions. Geoffrey Monari, former CEO of the Universities Fund, justified the concept as more egalitarian and cost-effective than the old method.

He warned that the High Court’s judgment could lead to a funding crisis, leaving students without financial support. The Court of Appeal’s interim verdict gives temporary relief while deferring the final decision on the model’s constitutionality until further proceedings.