Many first and second-year students in public universities are yet to report to various campuses for the second semester as uncertainty persists over the release of government funds for their upkeep.
Despite the Higher Education Loans Board (Helb) holding billions of shillings, a High Court ruling that nullified the new Variable Scholarship and Loan Funding Model last December has frozen disbursements, leaving many students unable to afford accommodation and meals even when allowed to continue studying with fees balances.
“The universities have opened, and because of the court ruling, they are in a difficult situation. The first years and the second years cannot access support (from the government). Also, what is most important is their upkeep, but Helb cannot release this.
“As a result, many of them are not able to come to the universities because they have no funds to sustain themselves. They are not able to pay their house rent or buy food, so they are still at home,” said Prof Daniel Mugendi, chairman of the Vice-Chancellors' Committee of Public Universities in Kenya during a media consultative meeting in Nairobi.
The new funding model was designed to provide a mix of government scholarships and loans based on students’ financial needs. Students are placed in five categories between Band 1 (for those from poor backgrounds who receive the most government support) and Band 5 (for high-income earners, who receive the least State support).
Further, Prof Mugendi noted that universities have agreed not to demand fees from first- and second-year students until the issue is resolved. However, confusion persists as students are unsure of the fees payable following the court's declaration of the new funding model as illegal.
“We have generally agreed as universities that we are not asking the first and second years to pay fees for now until the issue is resolved through the courts. Many of them are not aware of what amount of fees to pay—apart from self-sponsored students. For government –sponsored students, there is confusion because once the new funding model was declared illegal by the court, they are not sure what to pay,” he said.
However, Prof Mugendi added that while the funding for third to sixth-year students has been disbursed, universities are struggling due to their heavy reliance on student fees, research grants, and limited internal income.
“We have already received that capitation of the students under the (old) DUC (Differentiated Unit Cost)
He added: “The biggest source of university income comes from student fees. Without these fees, there aren't many other significant sources. Some alternatives include internal funding, such as research grants, income from university-owned firms, and other income-generating activities. However, I can tell you for sure that the money from these sources is not substantial.”
The introduction of a new university funding model by the government, aimed at tackling rising education costs and inequalities, quickly sparked controversy over its fairness and impact on students.
On December 20, 2024, the High Court ruled the model unconstitutional, citing discrimination and insufficient support for students, leaving many uncertain about the future of their education.
However, on January, the Court of Appeal certified as urgent the government’s appeal seeking to reinstate the new university funding model, which had been overturned in December.
On Monday, the duty judge directed The Trustees of Universities Fund Kenya and Higher Education Loans Board, to serve the court documents on other parties involved in the case.
“I have been directed to inform you that this application will be heard by a three-judge bench constituted by the President of the Court of Appeal,” deputy registrar of the Court of Appeal Moses Serem said.
However, students across the country are in turmoil after being informed they must clear all outstanding tuition fees based on the now-unconstitutional band system to register for their units, leading to widespread confusion and frustration on campuses.
At Multimedia University, for instance, students have been informed by the administration that they must clear all outstanding fee balances from the previous semester before the upcoming exam period. Failure to do so will result in being barred from sitting for the exams.
“I approached the administration to clarify my household fee, as it didn’t match the upkeep I received—my fee was listed under Band 5, but my upkeep was for Band 4. Their response shocked me. They said the institution has no access to Helb information and advised me to find their inquiry number online and contact them myself,” said Mary Wanjiru a student at MMU.
“This highlights a significant gap in the administration’s understanding and accessibility of information regarding the new funding model. They don’t seem to know how it works.”
According to Mary Wangare, she is required to pay Sh62,000 to sit her exams — an amount she never anticipated, especially after appealing her placement in the wrong funding band.
“I had already paid the school fees which I had been assigned because now I needed to sit for the exams. I had appealed for me to be placed in Band 1 at least but I have started my exams. This time I just paid the household fee,” said Ann Naliaka a student at JKUAT.
In a circular dated January 6, 2025, the university informed students that they must pay the full semester fees and register their course units on the ERP system to qualify for the end-of-semester examinations.
Failure to comply with these requirements would result in disqualification from sitting for the exams. Additionally, first- and second-year students under the New Funding Model were specifically instructed to clear any outstanding household or semester fee balances by the stated deadline.
“I am a concerned parent, I’m deeply troubled. Universities are forcing students to pay fees based on a model the court has already dismissed. It’s unfair to students placed in the wrong bands, especially when no appeals were considered,” said Geoffrey Gichana, a parent.
“A circular from multimedia university where my child goes even states that students can’t sit for exams without clearing fees. I urge the media to highlight this issue and push the government, through the Ministry, to provide clear guidance. Vulnerable students’ dreams are at risk of being crushed by this injustice,” he added.
Prof Mugendi added that universities have petitioned the court for a stay of the ruling, allowing operations to continue and enabling students to access their funds
