The Court of Appeal has suspended a High Court order that quashed President William Ruto’s university funding model.
The orders now give the government a green light to resume the Variable Scholarship Loan Funding Model, which marks a big win for Ruto.
The Variable Scholarship Loan Funding Model is a new system by the government for funding university and TVET students. Launched in 2023, it replaces the old Uniform Funding Model, which gave equal support to all students regardless of their financial situation.
In a ruling delivered on Wednesday, March 26, 2025, the appellate court stayed the High Court’s decision, allowing the contested funding framework to remain in effect for now.
The court directed the Attorney General, the Higher Education Loans Board (HELB), and the Kenya Universities and Colleges Central Placement Service (KUCCPS) to publicise the funding model within 14 days to universities, colleges, and students.
“The execution of the Judgment and orders of the High Court in Petition 412 of 2023, issued on 20th December 2024, is stayed,” the court ruled.
The legal battle stems from a High Court decision that struck down the government’s new funding model, introduced in May 2023, on the grounds that it was discriminatory and lacked sufficient public participation.
Justice Chacha Mwita ruled that the model violated the Universities Act by categorising students based on financial ability, school type, and age.
HELB and the Universities Fund challenged the decision, arguing that the ruling paralysed their ability to disburse funds, putting universities and students at risk.
Former HELB Acting CEO Mary Muchoki warned in an affidavit that the judgment could force the indefinite closure of higher education institutions.
Geoffrey Monari, former CEO of the Universities Fund, defended the model, stating it was more equitable and cost-effective than the previous system. He cautioned that the High Court’s decision could trigger a funding crisis, leaving students without financial support.
The Court of Appeal’s interim ruling provides temporary relief but leaves the final decision on the model’s legality pending further hearings.
