New Funding Model Suspension Leaves Over 200,000 University Students in Limbo.
Public universities are again facing a significant financial crisis, with the government halting funding for over 200,000 students after a September court order ruled the new funding model illegal.
This freeze affects scholarships and loans, leaving thousands of students unsupported and threatening institutional operations.
Many students may be barred from sitting end-of-semester exams due to unpaid fees, as universities face an impending financial collapse.
Without government funds, universities require students to settle outstanding tuition fees to sit exams. Many institutions have issued ultimatums to students, demanding full payment before tests scheduled for December.
University Fund Board CEO Geoffrey Monari stated that, in line with the court order, they paused disbursements, enforcing a strict standstill in the implementation of the new funding model.
Current Funding Shortfalls
A report to the National Assembly’s Education Committee shows that while 234,811 students were admitted in 2023 and 2024 under the new funding model, substantial funds remain undelivered.
Only Sh2.8 billion of the Sh13 billion in scholarships and Sh5 billion of the Sh16 billion in loans have been released, leaving universities short by Sh10.2 billion for scholarships and Sh11 billion for loans.
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This gap is straining institutions, unable to fund both operational costs and upkeep loans for vulnerable students.
The appeals process under the new funding model has also been suspended, forcing students into fixed financial aid bands. Vulnerable students have been particularly affected, unable to access upkeep loans crucial for daily expenses.
With the semester ending on December 12, universities struggle to manage basic operations and pay staff salaries.
University Responses and Staff Strike
Vice Chancellors warn of an imminent operational breakdown. According to Daniel Mugendi, Chairman of the Vice Chancellor’s Committee, universities risk grinding to a halt as they cannot meet operational costs without government support.
This challenge is compounded by an ongoing lecturers’ strike over the government’s failure to honor the 2012-2025 Collective Bargaining Agreement (CBA). Entering its eighth day, the strike has led to university closures and threatens semester delays.
Due to the funding suspension, universities are pushing parents to clear fee balances before exams. Many students, especially those from vulnerable backgrounds, may miss exams due to non-payment.
Some universities, however, agreed to allow first-year students with outstanding balances to sit exams if they provide evidence of filed appeals.
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In September, President William Ruto established a review team to evaluate the contentious new funding model.
As universities await a December 16 ruling, they remain without essential funding, and the future of students reliant on government financial aid remains uncertain.
New Funding Model Suspension Leaves Over 200,000 University Students in Limbo.
