Court of Appeal Suspends Court Ruling That Nullified University Funding Model

The Court of Appeal has issued a ruling on the new University Funding Model following the High Court’s declaration that it was unconstitutional.

This comes after the Higher Education Loans Board (HELB) and the Universities Fund (UF) appealed the judgment delivered by High Court Judge Justice Chacha Mwita.

In its ruling on Wednesday, March 26, 2025, the Court of Appeal stayed the High Court’s decision, allowing the implementation of the funding model to continue pending the outcome of the appeal.

The appellate court also directed Attorney General Dorcas Oduor, the Kenya Universities and Colleges Central Placement Service (KUCCPS), and HELB to publicize the funding framework within 14 days to all universities and colleges.

Additionally, the framework must be communicated to current university students, incoming students, and applicants intending to join in the next placement cycle.

“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 stated.

Also Read: Govt Clarifies Reverting to Old University Funding Model

Court of Appeal ruling

Furthermore, the appellate court instructed higher learning institutions to inform students currently under the funding model, as well as new applicants, that the framework could change depending on the outcome of the appeal.

It also directed that the issue of legal costs would be determined upon the conclusion of the case.

The Kenya Human Rights Commission, the Elimu Bora Coalition, and the students’ caucus had successfully challenged the new University Funding Model, arguing that it was not subjected to public participation, was discriminatory, and denied learners their constitutional right to education.

In their appeal against the December 20, 2024, ruling, HELB and the Universities Fund (UF) contended that its consequences could disrupt university learning due to delays in student funding disbursement.

Also Read: Blow to Govt as High Court Rules on University Funding Model

Appeal by HELB and the Universities Fund

The funding agencies further argued that Justice Mwita erred in both law and fact, and that the judgment rendered them unable to disburse funds to universities or students, particularly those in their first and second years, who were the primary beneficiaries of the now-unconstitutional funding model.

Former HELB Acting Chief Executive Officer Mary Muchoki, in her affidavit, also highlighted that the ruling placed higher education institutions at risk of immediate and indefinite closure.

She further averred that the judgment would lead to the indefinite suspension of HELB’s role in funding university education.

Former Universities Fund CEO Geoffrey Monari, in his affidavit, stated that the funding body had implemented the model after extensive public participation and that it ensured equity and equality—unlike the previous model, which focused solely on quality.

He also warned that the judgment could cause a stalemate in the education sector, as the funding model could no longer disburse funds to students.

In further defense of the outlawed model, Monari emphasized that it was more cost-effective and efficient in financing higher education.

Both HELB and UF also confirmed that they were unable to make payments to students due to the prohibitory orders in place.

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