There is a ray of hope at Moi University as workers have called off a three-month strike after signing a return to work formula with management over Sh8.6 billion in arrears of salaries and statutory deductions.
The workers, who are members of the University Academic Staff Union (Uasu) and Kenya University Staff Union (Kusu), decided to resume duties after signing the return to work agreement in a deal witnessed by Education Cabinet Secretary Julius Ogamba, Higher Education and Research Principal Secretary Dr Beatrice Inyangala and national officials of the two unions.
Under the agreement, the striking workers secured Sh2.6 billion in cash and assets, with an immediate release of Sh500 million.
The university management will surrender assets -- land in Kitale, Nairobi and Mombasa worth Sh2.1 billion -- which will be transferred to the unions' pension scheme.
In the 2025/2026 financial year, the union will receive Sh1.25 billion, which will be used to settle the 2012/2017 Collective Bargaining Agreement (CBA) salary arrears.
A further Sh3.3 billion will be released in the 2026/2027 financial year to settle bank loans and any arrears in the pension scheme.
The final payment of Sh1.75 billion will be included in the 2027/2028 financial year and will be used to settle all outstanding payments.
According to union officials, the Sh500 million has been distributed to meet the immediate financial needs of workers as they prepare to resume work.
About Sh100 million will be used to settle bank loans, Sh30 million for the provident fund, Sh40 million for welfare and Sh30 million for the group life insurance scheme.
A further Sh50 million has been set aside for union dues and Sh100 million to repay bank loans paid by individual factories.
Another contentious issue is the withdrawal of suspension letters issued to some Uasu members by the university management.
"I want to declare that the strike by Uasu members is over and I urge the university management to honour the return to work formula," said Uasu National Secretary General Dr Constantine Wasonga as she urged lecturers to report for duty on Monday.
He said the union would work with management on how to make up for lost time during the three months.
“We have accepted the small offer, which is better than nothing, while we wait to see how the entire Sh8.6 billion will be settled under the new agreement,” added Dr Wasonga.
CS Ogamba blamed ridiculous decisions, poor leadership and bad governance for the crisis that almost brought down the university.
"The challenges facing Moi University that erupted into this crisis have developed over the years. They are the result of decisions made by those in leadership," he said.
He disclosed that the government was committed to ensuring that the university regains its lost glory as one of the best performing tertiary institutions in the country.
"As a government, we cannot allow Moi University or another university to go down on account of bad leadership or any other interference," said Mr Ogamba.
The CS regretted that many innocent students had been subjected to untold hardship as a result of poor decision-making and warned that the government would not tolerate incompetent leaders running such tertiary institutions.
He urged stakeholders to work with the government to promote quality leadership and management in public universities.
Moi University Vice Chancellor Isaac Kosgey assured employees that there would be no victimisation as he asked for forgiveness.
"I thank the Moi University fraternity for accepting the offer and moving on as a university to spur this institution to greater heights in education," he said.
Learning at Moi University had been paralysed for three months after workers went on strike demanding payment of Sh8.6 billion in salary arrears and statutory deductions.
Financial irregularities being investigated at the university include failure to remit Sh4 billion in salary deductions, default on a Sh3 billion loan to Rivatex East Africa Limited, and accumulated unpaid bills of Sh1.1 billion as of June 2020.
Declining student enrolment from 50,000 in 2015 to 27,000 in 2021 and about 20,000 in 2023, closure of non-viable campuses, reduced government funding due to the introduction of the Differentiated Unit Cost (DUC) in the calculation of the recurrent capitation, and rising staff recruitment costs due to National Collective Bargaining Agreements (CBAs) that have not been fully funded are other factors contributing to the institution's woes.
