It means that your course selection and application was approved. You will have to wait until second placement to know which course and university you have been placed.
If you have already been placed to diploma course by KUCCPS, then there is no way to appeal. All that is left now is Inter Institution transfer. Alternatively, you can apply for a degree course as a self sponsored student.
Yes, you can apply for KUCCPS courses after you have received your KCSE exams. It is not mandatory to apply for courses in high school if you are not sure of the course you want to apply.
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