Cash-strapped Moi University to lay off employees
The entrance to Moi University's main campus in Kesses, Uasin Gishu County on February 8, 2024. Moi University Pension Scheme is holding Sh4.4 billion.
What you need to know:
- The Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) are probing financial and managerial mismanagement at the cash-strapped institution.
- Among financial irregularities under probe at the university include failure to remit Sh4 billion in payroll deductions, defaulted on a Sh3 billion loan owed to Rivatex East Africa Limited, and accumulated Sh1.1 billion in unpaid bills as of June 2020.
The financially-troubled Moi University has issued a notice of redundancy to formalise plans to lay off staff as part of its cost-cutting measures, three months after a new management team was appointed to salvage the institution.
“We hereby give formal notice of an intention to declare redundancy affecting several employees of your union. The details of the employees that shall be affected and the proposed timeline for the redundancy process will be communicated to you in due course,” reads the memo dated April 2, 2025, and signed by the acting vice-chancellor, Prof Kiplagat Kotut.
The memo is addressed to the national secretary-general of the Universities Academic Staff Union (UASU), as it affects union members. It is copied to the cabinet secretaries for Education, Labour, and Social Protection, the principal secretary for Higher Education and Research, and the Uasu secretary of the Moi University Chapter.
The University management said the impending staff redundancy has been necessitated by a reduction in revenue, as a result of the decline in student enrolment and a huge wage bill over the years that remains unsustainable and gobbles up to 70 per cent of the capitation from the Exchequer.
“This decision has been necessitated by a reduction of revenue brought about by the decline in student numbers. This has created a difficult operating environment making it a challenge for the university to meet its financial obligations including payment of employees’ emoluments. As a result, we are compelled to review our operations and adjust the workforce accordingly to ensure the sustainability of the university,” reads the notice.
Student numbers at Moi University dropped from 50,000 in 2015 to 27,000 in 2021 and about 4,800 in 2024 against the capacity of 15,000 students.
Prof Kotut stated that the management will engage the affected employees and Uasu representatives in accordance with the law and the collective bargaining agreement (CBA). It signed with the union.
“Our objective is to explore possible alternatives to limit the impact of the redundancy, including potential redeployment or alternative roles where possible,” added the notice.
The university management has promised to comply with the provisions of the Employment Act, individual contracts, and the UASU 2012 - 2013 CBA in the impending staff redundancy.
The employees affected by the layoff will be entitled to severance pay, salary in lieu of notice, payment for accrued leave days, and any other unpaid benefits due to them.
“All necessary deductions will be made in accordance with the applicable statutory requirements,” added the notice.
The Uasu chapter officials confirmed having received the notice and petitioned the university management to adhere to the laid down process when implementing the process.
“The employer can declare redundancy but there are procedures to follow and we shall be dealing with the matter in that context,” said Nyabuta Ojuki, the Uasu chapter secretary.
Some 324 workers on a contract basis were last month issued with termination letters due to what the management have attributed to a reduced workload occasioned by the drastic decline in student enrolment rate.
“You are aware that your three-month contract expires on 31st March 2025. You are also aware that the student numbers have drastically reduced resulting in a substantial reduction of workload that had earlier necessitated procuring extra workforce on contract terms.
Consequently, therefore, the university is not in a position to continue procuring workforce on contract terms,” said a notice on non-renewal of the contract signed by Prof. Khaemba Ongeti, Ag. Deputy Vice-Chancellor (Administration, Planning and Strategy).
The workers mainly casuals in security, cleaning, hostels, and library department among other sections will receive pending and unpaid six months’ January to June 2023, 15 days’ salary in lieu of notice, 15 days’ salary for each year worked, and salary for March 2025.
The university management has attributed the decision not to renew the contract for casual workers to a decline in student numbers, closure of non-viable campuses, reduced exchequer funding due to the implementation of differentiated Unit Cost (DUC) in computing the recurrent capitation, and the rising cost of personnel enrolment due to National Collective Bargaining Agreements (CBAs) that have not been fully funded.
The Ministry of Education last year appointed a new management team to salvage the financially troubled Moi University to reclaim its lost glory.
Education Cabinet Secretary Julius Ogamba appointed Prof Noah Midamba the new council chairman after President William Ruto promised to constitute a committee to evaluate the scale of the crisis facing the university and recommend a long-lasting solution.
Others are Prof Ronald Wasike, Dr Mercy Nyambura Kanyara, Dr Edwin Sambili, and Anne Weceke Makori as members of the university council.
The council consequently appointed Prof Kiplagat Kotut, the immediate former Deputy Vice-Chancellor (Academic, Research and Extension) at the University of Embu, as interim VC.
The treasury apportioned an additional Sh1.8 billion to Moi University last month to pay its employees and meet other recurrent expenses in the current financial year.
According to the newly tabled supplementary budget, approved estimates for salaries and other recurrent expenses for the university rose from Sh4.17 billion to Sh6.4 billion for the year ended June 2025.
Moi University’s appropriation in aid (A.I.A) which is deducted from the State’s funding rose by Sh456.4 million from Sh2.67 billion to Sh3.12 billion in the amended approved estimates.
The university bank accounts were in September attached to over Sh185 million debt owed to a contractor.
Justice Anthony Mrima ruled that Sh132.7 million be attached to both National Bank and Cooperative Bank accounts held by the university.
The Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) are probing financial and managerial mismanagement at the cash-strapped institution.
Among financial irregularities under probe at the university include failure to remit Sh4 billion in payroll deductions, defaulted on a Sh3 billion loan owed to Rivatex East Africa Limited, and accumulated Sh1.1 billion in unpaid bills as of June 2020.