High Court suspends Controller of Budget and council of governors’ deal on bursaries

The High Court has suspended a deal between the Controller of Budget (COB) and the Council of Governors (CoG) allowing county governments to continue issuing bursaries to institutions outside their scope.

Justice Samwel Mohochi issued temporary orders restraining COB Margaret Nyakang’o from withdrawing or retracting a circular she issued on January 14, 2025.

In the circular, Nyakang’o barred counties from issuing bursaries to primary and secondary schools and universities, clarifying that they were not authorized by the law.

However, after consultation with the CoG, she relaxed the decision, and counties were allowed to continue issuing bursaries.

However, on Monday afternoon, Mohochi restrained the COB from going against the circular that stopped county requisitions for expenditure on bursaries.

“The orders also apply to other education support programs targeted at universities, primary, secondary,y and special schools which are not accompanied by requisite inter-governmental transfer agreements,” ruled Mohochi.

Further, the court restricted COB from implementing any agreement reached with CoG during the Intergovernmental Budget and Economic Council (IBEC), held on January 27.

The court also barred the County governments of Nakuru and Murang’a which were sued in the case, from issuing new bursaries to new beneficiaries that extend beyond the financial year 2024/2025.

Through Lawyer Paul Gichana, Nakuru activist Laban Omusundi and Katiba Institute petitioned, challenging COB’s decision to relax the directives from her circular.

They sued Nakuru and Murang’a counties, COB, Cabinet Secretaries National Treasury and Education, National Assembly, and the Attorney General.

They listed CoG, the National Government Constituency Development Fund Board, the Government Affirmative Action Fund Board,the  Law Society of Kenya, and the Ministry of Labour and Social Protection as the interested parties.

In the ruled application, Gichana submitted that the circular was unfavorably received by members of the CoG, who, through press statements, opposed it.

“They faulted the COB and resolved to continue offering bursaries and scholarships and also to engage the Presidency on the issue,” submitted Gichana.

Following the backlash, Gichana deposed that the COB reportedly softened its stance, arguing that the circular was misunderstood and was not intended to stop counties from issuing bursaries.

He averred that they met during IBEC and discussed the circular with Deputy President Kithure Kindiki, who chairs IBEC calling for dialogue to reach an amicable solution.

“A joint communique was issued in which the office of COB and the CoG agreed to have all counties that have established distinct funds continue to draw disbursements for financial year 2024/2025,” he submitted.

He added that the communique advised county governments yet to establish distinct funds to put them in place and continue issuing bursaries or in the alternative pursue Intergovernmental Participatory Agreements with the Ministry of Education.

Further, the petitioners noted that Nakuru and Murang’a have continued to issue bursaries with lifespans of up to four years.

“The Petitioners are apprehensive that unless the Court urgently intervenes justice will be circumvented and the law will be violated,” he deposed.

The court also certified the application as urgent and ordered the two petitioners to serve the respondents and interested parties within five days.

The latter have seven days to file their responses.

The application will be heard on February 18.