Universities Fund, HELB appeal High Court ruling on new university funding model

The Universities Fund and the Higher Education Loans Board (HELB) have filed an appeal against the High Court’s recent ruling that declared the new university funding model unconstitutional.

The funding bodies argue that the decision, delivered by Justice Chacha Mwita on December 20, 2024, could disrupt learning in universities due to delays in disbursing funds to students, particularly those in their first and second years.

In their appeal, the agencies claim that the ruling has made it impossible to release funds to universities and students, as the new model was designed to benefit those in their early years of study.

They further argue that the court’s judgment was flawed both legally and factually, with serious consequences for the education sector.

Geoffrey Monari, CEO of the Universities Fund, stated in his affidavit that the funding model was introduced after thorough public consultation and was designed to promote equity and fairness.

He contended that it was a significant improvement over the previous system, which focused primarily on quality. Monari warned that the ruling could lead to a standstill in higher education, as the funding model is now effectively frozen.

“The model was more cost-effective and efficient in financing higher education, and its cessation is detrimental to the sector,” Monari said.

Indefinite closure

HELB’s Acting CEO, Mary Muchoki, also highlighted the gravity of the situation in her affidavit. She explained that the judgment has left HELB unable to provide funding to universities or students, placing institutions at risk of imminent and indefinite closure.

Muchoki noted that the ruling would lead to the suspension of HELB’s operations in financing university education entirely.

Both organisations confirmed that, due to the court’s prohibitory orders, they are unable to make payments to students.

Education Cabinet Secretary Julius Ogamba reiterated this saying, “As a government, we are against that position and we also made an application for state pending that appeal and it's been filed. We are waiting for directions from the courts.”

The decision follows a successful challenge by the Elimu Bora Coalition, the Kenya Human Rights Commission, and student representatives, who argued that the funding model lacked public participation, was discriminatory, and violated students’ constitutional right to education.

In his ruling, Justice Mwita declared the model unconstitutional and ordered the government to comply with constitutional and legal requirements.

The court has expedited the matter, certifying it as urgent and ordering that it be heard by a three-judge bench to be appointed by the President of the Court of Appeal.