The Ministry of Education has issued an update on the implementation of the new university funding model following a high court ruling that declared it unconstitutional. The Principal Secretary for the State Department for Higher Education and Research Beatrice Inyangala clarified that the government has not reverted to the old funding model.
PS Inyangala appeared before the Senate Standing Committee on Education on Thursday, March 20, where she said that the disbursement of funds under the new funding model is based on funds that had been appropriated in 2024 before the High Court judgment was issued.
“I want to clarify that we have not reverted to the old funding model. The money that is being disbursed had already been appropriated in 2024, when the judgment was made. We sought the advisory of the Attorney General, and we were guided appropriately to disburse the funds,” said PS Inyangala.
“The Ministry of Education through the Office of the Attorney General and Department of Justice filed a notice of appeal. The matter is before a three-judge bench scheduled for determination on 26th March 2025.”
At the same time, the PS said that while the court order had paused full implementation, some aspects of the funding model had already taken effect.
This is after the Senate Committee, led by Vice Chair Senator Margaret Kamar, sought clarity on the future of university funding, raising concerns about students left in limbo due to the suspension of the model.
PS Inyangala unveils plans for university funding model
Senators pressed the ministry to explain whether students who had already been placed under the model would continue receiving support and what alternative solutions were being considered to ensure uninterrupted learning.
PS Inyangala revealed that the ministry is exploring alternative approaches to keep universities running and ensure students receive financial support.
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Among the proposed solutions is a hybrid funding model that blends government scholarships, student loans, and private sector partnerships.
“The government, is actively engaging stakeholders, including the judiciary, universities, and financial institutions, to resolve the legal challenges and restore certainty to higher education funding,” stated the PS.
The Higher Education Loans Board (HELB) CEO Geoffrey Monari on his part said that the government is also considering expanding HELB financing, improving bursary allocations, and adjusting university fee structures to balance affordability with institutional sustainability.
Monari further advised the Senate Committee that since the Board commenced to disseminate information on the correct view of the model, there has been an increase of loan applications by 5000 students.
In addition, he said that HELB loan recoveries are at 64% currently.
Beyond short-term solutions, the ministry emphasized the need for long-term sustainability in university financing.
Officials suggested that universities should embrace revenue-generating initiatives such as research, innovation, and consultancy services to reduce reliance on government funding.
Additionally, cost-cutting measures and digital transformation could help institutions optimize resources while maintaining academic standards.
Court rules on appeal by government
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In February, the High Court of Kenya rejected an application by the government to suspend its earlier ruling that declared the new university funding model unconstitutional.
Justice Chacha Mwita reaffirmed the judgment made on December 20, 2024, stating that the funding model violated the constitution.
“Consequently, for the reasons stated above, the application dated January 27, 2025, is declined and dismissed. I make no order regarding costs,” the court stated.
The application, filed by the Kenya Universities and Colleges Central Placement Service (KUCCPS), sought a temporary suspension of the court’s decision to allow the regularization of the new funding model.
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