The entrance to Moi University's main campus in Kesses, Uasin Gishu County on February 8, 2024.
All has not been well at Moi University for years. The institution is teetering on the brink of collapse, weighed down by bad financial and administrative decisions, debts, a bloated workforce and skewed projects.
Instead of celebrating 40 years since its inception, the university is in a financial hole, including certified outstanding debts of Sh8 billion. The institution is closed following student unrest and a strike by faculty.
The Parliamentary Public Investments Committee on Education wants the Auditor-General to look into Moi University books of accounts. The team chaired by Bumula MP Jack Wamboka has also recommended suspension of projects at the university and hiring of staff.
“The Auditor-General should conduct a forensic audit on Moi University, covering the last five financial years and table findings in 60 days,” Wamboka said when VC Isaac Kosgey appeared before the team last month.
Among irregularities being investigated is failure by the administration to remit Sh4 billion in third-party payroll deductions, default on Sh3 billion owed to Rivatex East Africa Limited and accumulated Sh1.1 billion in unpaid bills as of June 2020.
Moi University was established in 1984 as a result of recommendations of a Presidential Working Party. It was shut last month because of strikes by lecturers and non-teaching staff. The workers accuse Moi University managers of failing to meet their basic financial obligations and staff welfare.
Staff demand overhaul
The Universities Academic Staff Union (Uasu), the Kenya University Staff Union (Kusu) and the Kenya Union of Domestic Hotels Educational Institutions Hospitals and Allied Workers are demanding an overhaul of the administration and council, citing mismanagement. They have been protesting delayed salaries, non-remittance of loan payments, pensions and other third-party deductions.
Lecturers are demanding the settlement of more than Sh8 billion, including unremitted statutory contributions for at least five years, pay arrears and other amounts they are owed before returning to work.
Efforts to end the strike have failed, with Uasu accusing the Moi University Council of being insensitive to of lecturers.
Moi University Uasu Chapter Deputy Secretary, Jeremiah Nyabuta, said the employer has been attempting to force them to resume teaching.
Nyabuta said the union would not sign any other engagement with the university until its demands are met.
Financial mismanagement
The Auditor-General’s 2018/19 financial year report showed Moi University had Sh4.5 billion debt that has since shot to Sh8 billion, according to the latest audited accounts. The institution has been on the spot over financial wrongdoing, exaggerated project estimates and improper staff hiring.
These include a Sh25 million tender for a new gate, diversion of Sh7.7 million in student fees by employees into private accounts and a Sh3 billion loan to modernise New Rivatex. The university bought the textile miller for Sh600 million.
“Workers with bank loans have been arraigned for default, causing them mental anguish as they are likely to lose property,” said Kusu, Moi University Branch Chairman Bob Odhiambo Ng’ura.
He added that close to 130 Kusu members have been sued by banks and micro-finance institutions for failing to service loans. Some cases have been filed at the Small Claims Court in Eldoret while other workers have received demand notices to settle the loans or have their property attached.
Decline in student enrolment
Away from financial woes, student enrolment has been on the decline – from 50,000 in 2015 to 27,000 in 2021, following the closing of campuses deemed non-viable. The university has also been hit by reduced funding from the Exchequer due to the differentiated unit cost in computing the recurrent capitation and rising cost of personnel enrolment.
Moi University has not fully implemented the collective bargaining agreements workers signed with their employers.
University Council Chairman Humphrey K Njuguna said Moi University received Sh97 million from the government against a monthly wage bill of Sh403 million.
Dr Njuguna said:
We never used to have problems with pension remittances but the situation grew worse when the government halted the parallel degree programme, which used to bring in Sh4 billion annually.
The National Assembly Education Committee recommended setting up of a caretaker team to strengthen the management of the university during recovery.
The Tinderet MP Julius Melly-led committee also recommended the release of more funds to the institution.
The management has been pondering on staff reduction as part of cost-cutting. In a memo, Prof Kosgey said Moi University was mulling redundancies.
“This is to notify you of impending redundancy...due to continued strain by the university to fund its wage bill… and align human resources to the workload,” the memo said.
The announcement did not go down well with staff, who accused the management of bias in hiring.
On September 9, 2021, the Ethics and Anti-Corruption Commission (EACC), said it was looking into claims of ghost workers at Moi University. The university has at least 10,000 staff, with 1,000 believed to be phantoms.
“We have put in place a strong HR management system to weed out ghost workers,” Prof Kosgey said.
'Abnormal' crisis
Universities Academic Staff Union national secretary-general Constantine Wasonga.
Uasu Secretary-General Constantine Wasonga, who teaches at the university, called for the removal of Prof Kosgey in 2021.
“The crisis at Moi and other public universities is not normal. The institution faces collapse because of administrative and financial irregularities,” Dr Wasonga said.
Moi University Student Organisation (Muso) has joined the chorus for an overhaul of the management team.
“It is time the government takes action, including removing the VC,” Muso President Vincent Tarus said.
Dr Richard Okero, the Moi Uasu chapter chairman, called for the intervention of President William Ruto.
“Banks now treat Moi University workers with contempt,” he said.
Demanded local to replace Prof Ayiro
Daystar vice chancellor, Prof Laban Ayiro, when he served in the same capacity at Moi University.
The university has been in the news for the wrong reasons since Prof Kosgey took over from acting VC Laban Ayiro.
Leaders in Uasin Gishu County mobilised residents to influence Prof Ayiro’s exit, insisting he must be replaced with a local. Prof Kosgey was named acting VC by then-Education CS Fred Matiang’i in 2015.
Then-Elgeyo Marakwet governor Alex Tolgos, Kapseret MP Oscar Sudi and then-Uasin Gishu governor Jackson Mandago – now senator – led the drive to evict Prof Ayiro. The same residents are now pushing for the removal of Prof Kosgey.
The VC, however, says things are looking up for Moi University. He says the university has started income-generating activities.
“The purpose is to diversify our revenue streams and contribute to the national agenda on food and nutrition,” he said.
In June, the university launched an apple cultivation project, targeting local and international. It hopes to expand land under apples from 100 acres to at least 500 in two years.
Moi University intends to start pig, dairy and poultry farming as well as reviving Elimu millers.
The university says it will lease 1,500 acres for farming, a decision challenged by a group that claims ownership of the land. Investors are to use the land for 60 months.
