Court clears way for new varsity funding model

Technical University of Kenya (TUK) students during graduation in Nairobi, on December 19, 2023.[File, Standard]

Thousands of university students can now apply for scholarships and loans after the Court of Appeal cleared the path.

The judges on Wednesday suspended a High Court ruling that had declared the government’s new university funding model unconstitutional.

The decision means that students will also get access to upkeep funds under the controversial funding model. This also allows the government to process appeals lodged by students on banding.

The court decision is also a relief for more than 246,000 students who sat the 2024 Kenya Certificate of Secondary Education (KCSE) and attained university entry mark, as the government can now open the application portal.

At the heart of the legal dispute was the Variable Scholarship Loan Funding Model, introduced in September, 2023, but nullified by the High Court in December. 

The lack of an alternative financing system had left the government, students and parents in limbo. 

The Court of Appeal also directed the Attorney General, the Higher Education Loans Board (Helb) and the Kenya Universities and Colleges Central Placement Service (KUCCPS) to publicise the funding framework within 14 days and establish an appeals mechanism for dissatisfied students.

They were also instructed to alert all stakeholders — including current and incoming students — that the model may be subject to changes after the final decision.

Additionally, Helb and the trustees of the Universities Fund must inform all students applying for and receiving funding that the model is under legal challenge. 

The court has also instructed any intended appellants to file their appeals —if they have not already done so — within 14 days, along with their written submissions.

Last week, Education Cabinet Secretary Julius Ogamba assured that all qualified candidates would be placed and confirmed that the university application portal would open by the end of the month.

In the last year's KCSE examination, 246,391 students attained a C+ and above, the minimum university entry grade. 

Among them, 1,693 scored an A plain, up from 1,216 in 2023. Additionally, 7,743 got grade A-, 19,150 achieved B+, 43,120 B, 75,347 scored B- while 99,338 registered C+.

The suspension of the funding model had led to protests. Students from the University of Nairobi and Egerton University stormed Helb headquarters demanding their stipends.

Under the contested model, Helb allocates tuition loans and upkeep allowances based on a Means Testing Instrument that assesses financial need. 

However, students and parents have criticised this tool, arguing it misrepresents applicants’ financial situation. 

Currently, students receive upkeep loans ranging from Sh40,000 to Sh60,000, depending on their assessed need.