The activists say that the presidential directive that instituted the funding model is an illegality, unconstitutional and an attempt to usurp Parliament's law-making role.
Civil society group points out that previous administrations have formed similar committees, but no meaningful changes resulted from them.
Education CS Ogamba on Wednesday had a difficult time defending the MTI system, which uses data to classify students into different categories for financial aid.
During his campaign, Ruto made bold promises aimed at transforming the education system, ensuring accessibility, quality, and equity across the board.
The student leaders have now issued the government a 30-day notice to address their concerns, including the abolition of Bands 4 and 5,
Kenya University Students Association (KUSA) Secretary General, Bonface Ododa, issued a call to action in a letter addressed to all university students, urging them to participate in the demonstrations.
The VCs they said the new model has saved the institutions that have been grappling with massive financial challenges from collapsing.
Ruto said that in the new model, students living with disability will be paying only 5 per cent of the college fees as opposed to 25 per cent that such students paid in the older model.
Ruto said that those who appealed will get their feedback after two weeks after the process has concluded.
The President added that he has only added one band to the existing four, to make them five.
Videos circulating on social media showed students barricading the highway with bonfires and stones. The students used whistles and vuvuzelas to stop motorists.
The petitioners had sued the Universities Fund, Higher Education Loans Board, Cabinet Secretary for the Ministry of Education, Kenya Universities and Colleges Central Placement Service and the Attorney General who are named as the respondents in the suit to stop the implementation of the discriminative model.
This systematic failure threatens to undermine the very goal the model was designed to achieve, placing the higher education sector in jeopardy.
Another problem is the reform's lack of clear methods for financing capital projects and the expansion of university infrastructure.
Education Cabinet Secretary Julius Ogamba on Friday announced that Sh5.2 billion has been released to the Higher Education Loans Board (HELB) for tuition and upkeep loans.
Students from the vulnerable and extremely needy households will receive 100 per cent funding, while the needy and less needy will get a 93 per cent scholarship.
Vice-Chancellors have also been directed to facilitate suitable accommodation arrangements for first-year students, with the guarantee that the necessary fees will be paid upon disbursement of the upkeep component.
Higher Education and Research Principal Secretary Beatrice Inyangala attributed the sharp reduction to underutilisation of the annual allocation by researchers.
Education Cabinet Secretary Ezekiel Machogu announced the new date in a statement on Monday, citing the Eid ul-Adha celebration.
Machogu said lack of funds poses a serious threat to the quality of education, particularly for students with severe disabilities