Controller of Budget seeks court interpretation to resolve bursary deadlock

Thousands of students across Kenya are facing uncertainty over their bursary applications, as the Controller of Budget, Margaret Nyakang’o, seeks urgent court clarification on orders that have halted the disbursement of county bursaries.

The situation has left many learners waiting for much-needed financial support, with no clear path forward.

Nyakang’o, in an application filed at the Nakuru High Court, is requesting the court to interpret orders issued on February 3, 2025.

These orders have, according to her, caused confusion and disrupted the implementation of Circular No. 1 of 2025, which sets out the rules governing county bursary disbursements.

This circular requires counties to back their bursary requests with formal inter-governmental agreements, a process that has been thrown into disarray due to the ongoing court orders.

The case stems from a constitutional petition filed by Laban Omusundi and the Katiba Institute, who are challenging the management of public finance at the county level concerning education support programmes.

The case includes several respondents, including the counties of Nakuru and Murang’a, the National Treasury, the Senate, and the National Assembly.

According to Nyakang’o’s application, while a court ruling on April 8, 2025, clarified certain aspects of the orders, it did not address critical elements of the ruling, leaving gaps in the interpretation.

Specifically, Orders 5, 6, and 8 were not sufficiently clarified, creating legal ambiguity and preventing the processing of bursary requests.

Nyakang’o argues that without clear guidance on these orders, her office is unable to approve any bursary disbursements, leaving thousands of students in limbo.

Orders 5 and 6 were intended to uphold the authority of Circular No. 1 of 2025, preventing the Controller from interfering with its implementation. However, Orders 7 and 9 present a significant restriction.

Order 7 directs Nyakang’o’s office not to approve any bursary disbursements unless counties have signed the necessary inter-governmental agreements.

Meanwhile, Order 9 bars the counties of Nakuru and Murang’a from issuing new bursaries or extending support beyond the current financial year, further complicating the situation for students seeking assistance.

Nyakang’o has expressed concern that the selective nature of the court's clarifications has left her office with no clear direction, potentially putting her in a position where any decision made could be construed as contempt.

In her sworn affidavit, she emphasized that her application for clarification was made in good faith, aimed at ensuring compliance with the law and protecting the principles of sound financial management.

"This application is made in good faith to ensure compliance and safeguard prudent financial management," Nyakang’o stated.

Meanwhile, the County Government of Murang’a has escalated the matter by filing contempt of court proceedings against the Controller, accusing her of failing to comply with the disputed orders.

The ongoing legal battles over the interpretation and implementation of these orders have created further complications, leaving students and county governments in a state of uncertainty regarding the distribution of bursaries.