Public universities across the country are facing an impending financial crisis following the government’s decision to freeze funding for over 200,000 students under the new funding model, which was deemed illegal by the court in September. With the court case set for determination on December 16, institutions are at risk of grinding to a halt, and thousands of students face the prospect of being excluded from sitting for their end-of-semester exams.
As a result of the court order, scholarships and loans have been suspended, leaving many students without financial support. Universities are grappling with mounting operational costs and are now in a dire situation with the semester set to end by December 12. Several institutions have announced that students will be required to clear outstanding tuition fees before being allowed to sit for their exams, further exacerbating the financial strain on students and their families.
University Fund Board CEO Explains Financial Freeze
Geoffrey Monari, CEO of the University Fund Board, explained that the suspension of disbursements to universities was a direct result of the court ruling. “We are complying with the court order, and as long as the order is in place, implementation of the new funding model cannot go on. This includes the disbursement of the funds,” Monari stated. This financial freeze has left universities unable to meet basic operational costs, such as paying staff salaries.
Delayed Disbursement and Frozen Appeals
A report presented to the National Assembly’s Education Committee revealed that over 234,000 students admitted to universities in 2023 and 2024 were benefiting from the new funding model. However, of the Sh13 billion allocated for scholarships, only Sh2.8 billion has been disbursed, leaving universities with a shortfall of Sh10.2 billion. Additionally, out of the Sh16 billion earmarked for loans, only Sh5 billion has been released, leaving Sh11 billion undisbursed.
The court’s decision has also frozen the appeals process under the new funding model, leaving students locked into the initial funding bands allocated to them. This has caused significant hardship for many students, particularly vulnerable groups, who are unable to access additional support or the essential upkeep loans necessary to cover their daily living expenses.
Universities Face Operational Crisis
Vice Chancellors across the country have warned that universities may soon face an operational standstill if the financial situation is not resolved. Daniel Mugendi, Chairman of the Vice Chancellors’ Committee, highlighted the severe impact the funding freeze is having on university operations. “Universities rely on these funds for operations, and without them, we won’t be able to pay staff. Students are also suffering, as some have yet to receive their upkeep funds,” Mugendi stated.
The situation has been further exacerbated by an ongoing lecturers’ strike, which entered its eighth day on Tuesday, over the government’s failure to honour the 2012-2025 Collective Bargaining Agreement (CBA). This strike threatens to delay the completion of the semester, further complicating an already tense situation.
Students Face Potential Exam Exclusion
As the semester nears its end, universities are enforcing strict rules that require students to pay outstanding fees in full before being allowed to sit for exams. Some institutions have set an ultimatum for students to clear their fees or risk being barred from taking exams. However, Prof Mugendi clarified that vice chancellors had agreed to allow first-year students with pending fees, who have filed appeals, to sit for exams if they provide evidence of their appeal.
The suspension of financial aid and the threat of exam exclusion have left thousands of students in limbo, with many scrambling to secure the necessary funds to continue their education. This has caused widespread concern among students, parents, and educators, who are calling on the government to urgently address the funding crisis.
Call for Government Intervention
With the financial crisis deepening, university leaders are urging the government to urgently review the current funding situation and ensure that students can continue their education without the fear of exclusion from exams or financial ruin. As the case remains unresolved until December 16, the future of Kenya’s public universities and the education of thousands of students remains uncertain.
The government has yet to provide clarity on when funding will be restored, and as the deadline for exams approaches, universities are facing an increasingly difficult choice between maintaining operations and fulfilling their obligations to students.
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