Legal clarity paves way for counties to release education funds

Governors have won a reprieve in a legal standoff that had stalled the release of bursary funds for students, with the High Court ruling that previously approved disbursements can go ahead.

The judgment is expected to ease pressure on counties that were unable to fund students due to confusion over a court order issued in February.

The legal battle began after activist Laban Omusundi and the Katiba Institute filed a petition in February challenging the Controller of Budget’s decision to lift a restriction on bursary allocations to institutions outside county jurisdictions.

The petition argued that such a move required a proper legal framework.

Following that, the court issued temporary orders suspending the withdrawal of the circular.

However, the Controller of Budget interpreted the suspension to mean that no bursaries could be released in the current financial year, even those already budgeted.

This interpretation led Murang’a Governor Irungu Kang’ata and others to return to court, seeking clarification.

Kang’ata told the court that counties had been denied the ability to disburse funds already set aside for needy students.

This he said, had crippled counties’ ability to support students under the current financial year.

Justice Samuel Mohochi, in his ruling, clarified that the conservatory orders were only meant to stop new bursary processes for the 2025/26 financial year.

"For clarity and avoidance of doubt, this court hereby clarifies that the temporary conservatory orders issued by this court had the effect of only restraining the parties from processing, issuing, or approving fresh bursaries during the pendency of this petition," he stated.

The counties of Murang’a, Nakuru, and Uasin Gishu had separately asked the court to allow disbursement of already approved bursaries, arguing that the Controller’s stance was harming students.

The petition named the Controller of Budget, National Treasury, Education Ministry, the National Assembly, and the Attorney-General among others.

The Law Society of Kenya, the Council of Governors, and various government boards were listed as interested parties.

As a result of the court’s clarification, counties can now release bursary funds already approved in their budgets, offering timely relief to learners and families.