Limping Moi University Set To Lay Off Hundreds Of Workers

Cash-strapped Moi University has announced plans to retrench hundreds of its employees following a ballooning wage bill.

In an internal memo dated July 4, 2022, Moi University Vice-Chancellor Prof Isaac Kosgey revealed that the current wage bill consumes at least 70 percent of the finances allocated by the government.

“As you are aware, the University has been facing difficulties in meeting its wage bill obligations. Over the years, the University wage bill has been increasing, currently taking up over 70% of the Capitation from the Exchequer,” Prof Kosgey said.

“With the continued decline of revenues, the University is unable to sustain the growing wage bill and, as such, it has become necessary to undertake right-sizing of the human resource to ensure sustainability of the University and its operations. Towards this end, the University is considering a reduction in staffing levels that will call for compulsory redundancies. This is, therefore, to notify you of the impending redundancy of staff due to the continued strain by the University to fully fund its wage bill, and to align the human resource to the existing workload,” he added.

According to the Auditor General’s report of 2020, the university’s revenue for the year ended June 2020 was Ksh7.8 billion against an expenditure of Ksh 8.3 billion, therefore recording a deficit of Ksh504 million.

As of 2021, the university admitted that it was insolvent with a debt which had accumulated to more than Ksh4.5 billion.

In 2019,  the management reduced the number of departments from 80 to 50 by merging some departments with others.

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