The Court of Appeal has overturned a previous High Court ruling that declared the Higher Education Funding Model unconstitutional.
In a ruling delivered on Wednesday, March 26, the appellate court ordered the reinstatement of the funding model pending a final decision on the matter.
“The execution of the judgment and orders of the High Court in Petition 412 of 2023, issued on December 20, 2024, is hereby stayed,” the court stated.
As part of its directive, the court instructed the Universities Fund to notify all public universities and students about the reinstated funding framework within 14 days. This is to ensure that students who are dissatisfied with their assigned funding categories have an opportunity to appeal.
The Variable Scholarship and Loan Funding Model, introduced in 2023, was designed to address financial challenges in public universities arising from high enrolment numbers and limited government funding. The model combines scholarships, student loans, and household contributions, allocated on a graduated scale using the Means Testing Instrument (MTI). This tool assesses students’ financial need to fairly distribute funding based on individual circumstances.
The funding model was temporarily suspended on October 3, 2024, following a court injunction in a case filed by the Kenya Human Rights Commission (KHRC), the Elimu Bora Working Group, and the Students’ Caucus. The petitioners argued that the model was introduced without adequate public participation.
On December 20, 2024, High Court Judge Chacha Mwita ruled that the model was unconstitutional due to the lack of public involvement prior to its implementation.
In response, former Universities Fund CEO Geoffrey Monari defended the model, stating in an affidavit that it was both cost-effective and efficient for financing higher education. He maintained that the model had been rolled out following public engagement processes.
“The funding body implemented the model after robust public participation, and it promotes equity and equality—unlike the previous model, which was more focused on quality than fairness,” Monari stated.
In just two years since the implementation of the New Higher Education Funding Model, more than 240,000 students have benefited from government scholarships—significantly easing the financial burden on households across the country.
Beyond supporting students, the model has also positively impacted public universities. It has contributed to a reduction in pending bills and helped institutions meet outstanding obligations, particularly in operational expenses and payments to suppliers. This financial relief has enhanced the stability and efficiency of university operations, reinforcing the model’s dual objective of student support and institutional sustainability.
