The Ministry of Education’s Cabinet Secretary, Julius Ogamba, has announced that the government is working on a new and improved funding model for students in higher learning institutions.
Ogamba stated that the new model is set to be implemented in September, coinciding with the admission of the 2024 Form Four KCSE class into universities, colleges, and TVET institutions.
The Cabinet Secretary shared that a special committee, appointed by the President in September 2024, has already submitted its preliminary report.
This report suggests changes to the university funding model that was introduced in 2023, which had been fraught with challenges.
The original funding model, designed to support higher education financing, faced significant issues and was ultimately quashed by the High Court in December 2024.
This ruling severely disrupted the disbursement of Higher Education Loans and tuition fees to students.
What was initially introduced as a solution to ease the burden of tuition fees turned out to put more pressure on parents, forcing them to contribute more for their children’s education.
In December 2024, the High Court declared the model unconstitutional. Justice Mwita, in his ruling, ordered the government to comply with constitutional and legal requirements.
This decision followed a successful challenge brought by the Elimu Bora Coalition, the Kenya Human Rights Commission, and student representatives, who argued that the model lacked public input, was discriminatory, and violated students’ constitutional right to education.
Recently, the Universities Fund and the Higher Education Loans Board (HELB) filed an appeal against the High Court ruling, expressing concerns that the decision could disrupt university education.
They emphasized that the delay in disbursing funds, especially for first-year and second-year students, could have serious consequences for the academic year.
In their appeal, the institutions argued that the ruling made it impossible to release funds to universities and students, as the model was intended to help those in the early years of their studies.
They also criticized the court’s decision as legally and factually flawed, warning that it could have severe repercussions for the education sector.
Geoffrey Monari, CEO of the Universities Fund, explained in his affidavit that the funding model had been introduced after extensive public consultation. He emphasized that the model aimed to promote fairness and equity in higher education financing.
Monari argued that it was a significant improvement over the previous system, which focused primarily on quality. He cautioned that the court’s ruling could lead to a standstill in higher education, as the model is now effectively frozen.
HELB’s Acting CEO, Mary Muchoki, echoed Monari’s concerns, highlighting the gravity of the situation.
She explained that the judgment left HELB unable to provide funds to universities or students, putting institutions at risk of imminent and indefinite closure.
Muchoki stated that this ruling would force HELB to suspend its operations in financing university education altogether.
Both the Universities Fund and HELB have confirmed that they are unable to make payments to students due to the court’s orders.
Education Cabinet Secretary Julius Ogamba has reiterated that the government strongly opposes this decision and has filed an application for a stay of execution while awaiting further directions from the court.
Meanwhile, the proposed new funding model includes a key change: expanding the variables used by the Means Testing Instrument (MTI) to assess students’ financial needs based on their household incomes.
This will help categorize students into different funding bands, ensuring that those most in need receive the appropriate level of support.
Ogamba acknowledged the challenges faced by the current model, which has been in operation for two years.
He stated that a committee was formed to address these issues and realign the model to better meet its objectives. The committee has submitted an interim report and is now finalizing its work.
He assured that the changes would be integrated into the new model, which will be fully operational by September 2025.
Despite the challenges, Ogamba emphasized that the model had functioned for two years and, with these refinements, it will be more effective in meeting the needs of students and institutions.
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