The government has drafted an improved University Funding model following the High Court of Kenya’s decision that declared the current formular unconstitutional.
The ruling froze the disbursement of funds under the Higher Education Loans Board (HELB) and the Universities Fund, which were critical for first- and second-year students under the new student-centered funding model introduced in May 2023.
However, the ruling left students in limbo, sparking an uproar as uncertainty loomed over how they would be funded.
In response, Education Cabinet Secretary Julius Ogamba has revealed that a new, improved draft model on how the government will fund students in tertiary institutions is in the works.
A special committee appointed by President William Ruto in September last year has submitted its preliminary report. The committee proposes changes to the earlier model introduced in 2023, which had faced challenges before being quashed by the court.
CS Ogamba while speaking to Nation said the final report would be ready either by the end of the week or early February.
Ogamba speaks on revised university funding model
According to the CS, the proposed new model is expected to come into force in September, when 2024 Form Four leavers join universities and colleges.
Also Read: HELB Issues Way Forward for University Funding Model After Court Order
One of the key proposals is expansion of variables used by the Means Testing Instrument (MTI) to determine students’ level of need based on their household incomes and subsequently place them into various bands.
“The funding model, in operation for two years, has faced challenges, which we acknowledged. A committee was introduced to address these issues and align the model. They have submitted an interim report and are finalizing their work,” said Ogamba during an inspection of classrooms in Uthiru.
“Once complete, the changes will be integrated to ensure the model is fit for purpose. Despite the challenges, the model has functioned for two years, and by September, it will be refined and fully operational.”
The defunct model sparked controversy over fairness in allocation of funds as well as the loan burden on students upon graduation.
On December 20, 2024, the High Court ruled that the model was unconstitutional, citing discrimination and insufficient support for students.
Govt appeals High Court ruling
The Court of Appeal certified as urgent, the government’s appeal seeking to reinstate the model. In effect, the court directed the trustees of Universities Fund and HELB to serve it documents on other parties involved in the case.
Also Read: Govt Makes Major Changes in Moi University Leadership
The announcement by Ogamba comes at a time thousands of first- and second-year students who are yet to report to campuses are trapped in a financial limbo caused by the High Court ruling that declared the old university funding model unconstitutional.
With no money for tuition, accommodation, or even basic meals, many students face the harsh reality of potentially missing out on education as public universities reopen for the second semester.
The Vice-Chancellor’s Committee of Public Universities in Kenya Chairperson Prof Daniel Mugendi said without funds for tuition, accommodation, or meals, many students face uncertainty about their education.
“Universities have opened, but because of the ruling, first- and second-year students cannot access support from the government. They don’t have money for their upkeep, and many are unable to attend lectures,” said Prof Mugendi.
Prof Mugendi who doubles as the VC Embu University expressed optimism that the case would be handled urgently to enable release of funds.
“This is what is keeping universities operational for now because the rest of the students have their upkeep from Helb already in their accounts,” he said.
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