High Court Asked to Clarify Whether County Bursary Orders Apply to 2026/2027

• The Kenya High Court has certified as urgent an application seeking clarification on the scope of existing conservatory orders regarding county bursaries.
• Controller of Budget Margaret Nyakang'o filed the application, requesting directions on whether June 17, 2025 orders apply to 2026/2027 financial year requisitions.
• The existing orders restrained processing of "fresh bursaries" and "new beneficiaries" beyond the 2025/2026 financial year.
• Nyakang'o seeks clarity to avoid contempt of court or unlawfully withholding funds, as county governments are already submitting 2026/2027 bursary requests.
• The underlying constitutional petition, which is before a three-judge bench, concerns the division of functions between national and county governments.

The Controller of Budget Margaret Nyakang'o emphasizes that clear High Court directions bursary processing are essential to provide legal certainty for the processing and approval of county bursary and educational support requisitions for the 2026/2027 financial year.

The Kenya High Court has recently acknowledged the urgency of a legal matter seeking clarity on the applicability of existing conservatory orders concerning county bursaries. While certifying the application as urgent, the court opted not to issue immediate ex parte reliefs, instead directing that the case proceed for full consideration. This development stems from an application filed by the Controller of Budget, FCPA Dr. Margaret Nyakang'o, who is seeking definitive High Court directions on the precise scope of conservatory orders initially issued on June 17, 2025.

Dr. Nyakang'o's office has observed that county governments have begun submitting requisitions for bursary and educational support expenditure specifically for the upcoming 2026/2027 financial year. This influx of requests has created significant Kenya public finance management uncertainty regarding whether these submissions can be lawfully processed and approved under the current judicial directives. The Controller of Budget is therefore asking the court to determine whether the June 17, 2025 orders, which were put in place pending a broader constitutional petition, remain effective for the new financial year.

The original conservatory orders, issued on June 17, 2025, explicitly restrained the processing and approval of "fresh bursaries" and those designated for "new beneficiaries" beyond the 2025/2026 financial year. Given this, the Controller of Budget is requesting the court to clarify if these restrictions extend to the Kenya High Court county bursary orders 2026/2027. In the alternative, Dr. Nyakang'o has proposed that the court establish clear criteria for handling county education support requisitions for the 2026/2027 period, pending the final resolution of the underlying constitutional petition.

Furthermore, the Controller of Budget Margaret Nyakang'o has sought permission for her office to continue processing requisitions, provided the expenditure is strictly confined to functions assigned to county governments under Part Two of the Fourth Schedule to the Constitution. Such processing, if permitted, would adhere to the guidelines outlined in Circular No. COB/Circular No. 1/2025. The constitutional petition itself, which is currently before a three-judge bench, raises substantial questions regarding the division of functions between national and county governments. The High Court has previously provided similar clarifications for the 2025/2026 financial year, including an ex-tempore ruling on April 8, 2025, and a subsequent ruling on May 22, 2025, setting a precedent for the current request for Conservatory orders scope 2026/2027.

The need for judicial clarification is paramount to avert a precarious situation for the Controller of Budget. Without clear guidance, Dr. Nyakang'o's office faces the risk of either being cited for contempt of court for approving expenditures contrary to existing orders or, conversely, unlawfully withholding funds for disbursements deemed constitutionally permissible. This ongoing Kenya public finance management uncertainty directly impacts learners and families who rely heavily on county bursaries and other vital educational support programmes.

The Controller of Budget Margaret Nyakang'o emphasizes that clear High Court directions bursary processing are essential to provide legal certainty for the processing and approval of county bursary and educational support requisitions for the 2026/2027 financial year. The resolution of this matter is critical not only for administrative compliance but also for ensuring the uninterrupted flow of educational support to eligible beneficiaries across Kenyan counties, aligning with the broader constitutional petition county functions.

Compliance officers and legal advisors to Kenyan county governments must closely monitor the High Court's upcoming clarification on bursary processing for 2026/2027 to ensure compliance with existing conservatory orders and avoid potential contempt of court or unlawful withholding of funds.

Source: Original reporting via Capital FM