The High Court has temporarily suspended the new Variable Scholarship and Loan Funding model introduced for university and college education. The suspension comes after a court challenge from three organizations that have argued the new funding framework is unconstitutional and has caused confusion within institutions of higher learning. Institutions involved include KHRC, the Elimu Bora Working Group, and the Students' Caucus.
Justice Chacha Mwita ordered the Ministry of Education to suspend the VSLF model pending the hearing and determination of the petition. The matter is set for hearing on December 16.
Concerns by the Petitioners
The petitioners asserted that the VSLF model shifts the burden of financing education from the government to parents, a majority of whom were already finding it hard to keep their children in school due to financial constraints. They also said the selection process for universities and technical and vocational courses is not transparent and takes very long, which delays students. The Kenya Universities and Colleges Central Placement Service, mandated to address placement issues, has not given any clear guidelines about the way forward, thus leaving many students in limbo.
Students are categorized into four groups, according to the new model, in relation to their financial needs as vulnerable, extremely needy, needy, and less needy. This immediately prescribes the percentage ratio for scholarships and loans they will receive. Whereas the vulnerable students can receive up to 82% as scholarships and 18% in loans, the less needy will receive 38% as scholarships, 55% in loans, and make a required contribution of 7% of the fees. In this model, a Means Testing Instrument (MTI) is utilized to measure the financial positions of all students.
However, petitioners argued that this model was hurried into implementation without consultations or proper legislation. They further argue that already in existence were statutory bodies by the name of Higher Education Loans Board-HELb and Universities Fund, which by law were authorized to handle higher education funding through the Universities Act. These institutions, for some time, had been observing the Maximum Differentiated Unit Cost Model to accommodate government-sponsored students.
Allegations of unconstitutional Acts
The petitioners' case is that the VSLF model established herein violates constitutional tenets as enshrined in the Constitution of Kenya, 2010, particularly the Bill of Rights and public interest provisions. They argue that students incur exorbitant costs for education, capped at KSh 650,000 per year without scholarships or bursaries, an amount which is unreasonably higher than the previous annual cost of KSh 16,000 under government sponsorship. Problems with registration fees, problems with accommodation, and other requirements have marred the smooth beginning of studies.
Organizations also argue that the new model has discriminated against underage students who, because of their minor legal status, cannot access the funding. Under the previous system, this category of students could use their parents' details to apply for financial support; this facility is no longer available under the new system.
What the petitioners are saying is that in introducing that VSLF model, the presidential directive bypassed Parliament, thus going contrary to sections 53 and 54 of the Universities Act and was therefore unconstitutional. They want the court to declare the model null and void.
Wider Implications for Higher Education
This is a major ruling, which casts a wide-spread ramification into the education system in Kenya, especially because universities and Technical and Vocational Education and Training institutions are already struggling to keep their heads above water financially. With the new model suspended, the sector is now plunged into uncertainty as students and institutions await what the court will say in December.
Meanwhile, the reprieve caused by the temporary suspension saves students a break since many had started reeling from financial problems arising from the sudden changes in the funding structure. However, as the solution is yet to clearly outline what is agreed upon, the future of higher education funding remains uncertain in Kenya.