Universities Fund and HELB Appeal Court Ruling on New Funding Model

Universities Fund and HELB Appeal Court Ruling on New Funding Model.

The Universities Fund and the Higher Education Loans Board (HELB) have filed an appeal against the High Court judgment by Justice Chacha Mwita, which declared the new university funding model unconstitutional.

The agencies are challenging the December 20, 2024, ruling, arguing that its implications could disrupt learning in universities due to delays in fund disbursements.

They assert that Justice Mwita erred in law and fact, leaving them unable to provide funds to universities or students, especially those in their first and second years who were the primary beneficiaries of the nullified funding model.

Universities Fund’s Position

Geoffrey Monari, CEO of the Universities Fund, explained in his affidavit that the funding model was implemented following robust public participation. He stated that the model ensured equity and equality in university funding, unlike the previous model, which primarily focused on quality.

Monari warned that the ruling risks paralyzing the education sector, as the funding framework can no longer operate. He emphasized that the model had proven to be more cost-effective and efficient for financing higher education.

HELB’s Concerns

Mary Muchoki, Acting CEO of HELB, also expressed concerns in her affidavit, noting that the judgment has rendered the loans board unable to disburse funds to universities and students. She cautioned that higher education institutions face the threat of immediate and indefinite closure.

Additionally, Muchoki pointed out that HELB’s role in funding university education has been indefinitely suspended due to the court’s prohibitory orders. Both agencies confirmed their inability to make payments to students under the current circumstances.

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Grounds for Legal Challenge

The new funding model faced legal opposition from the Elimu Bora Coalition, the Kenya Human Rights Commission, and the students’ caucus. They argued that the model was discriminatory, lacked adequate public participation, and infringed upon learners’ constitutional right to education.

Justice Mwita ruled the model unconstitutional and unlawful until the government meets constitutional and legal requirements. The courts certified the matter as urgent, ordering it to be heard by a three-judge bench appointed by the President of the Court of Appeal.

With both sides preparing for the upcoming appeal, stakeholders in the education sector await a resolution that ensures equitable and sustainable funding for higher education.

Universities Fund and HELB Appeal Court Ruling on New Funding Model.

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