Years of financial strain have pushed Moi University back to one of its toughest cost-cutting measures, with the institution preparing to reduce its workforce as it fights to keep its finances under control.
University management says the planned restructuring will trim about Ksh 100 million from its monthly wage bill, a move it considers critical to easing pressure on an institution weighed down by billions of shillings in unpaid obligations.
The layoffs had been put on hold after labour unions challenged an earlier redundancy process in court. However, the university has now been cleared to begin the exercise afresh, provided it complies with the legal requirements governing redundancies.
The renewed push to reduce staff numbers comes as Moi University continues to recover from years of financial instability that have seen employees experience salary delays, pension contributions go unpaid, and suppliers wait months for settlement of their bills. The crisis has also disrupted academic programmes and triggered repeated industrial action by staff unions.
Addressing members of the National Assembly’s Education Committee, Acting Vice-Chancellor Prof. Kiplagat Kotut said funding to implement the redundancy programme has already been set aside under the 2025/26 Supplementary Budget, paving the way for the exercise to proceed.
The university believes reducing its payroll is necessary if it is to redirect resources towards meeting other pressing obligations, including statutory deductions, pension remittances and staff benefits that have accumulated over the years.
Moi University’s financial troubles
Moi University’s financial troubles have largely been linked to declining student enrolment and shrinking internally generated income, even as employment costs remained high. Like several public universities across the country, it has struggled to balance its expenditure with the funding it receives from the government and tuition fees.
Management has also been reviewing staffing levels across departments as part of a wider restructuring programme intended to align the university’s workforce with its current operational needs.
Besides the planned layoffs, the university has already taken steps to lower salary costs by transferring 56 employees to Kabarnet University College after the institution was formally established. The redeployment is expected to save Moi University about Ksh11 million every month.
It is also seeking support from other public universities by encouraging them to recruit qualified staff from Moi University whenever vacancies arise. The approach is expected to cushion some employees who may be affected by the restructuring while reducing the institution’s payroll burden.
Even as it cuts costs, the university says its financial challenges remain far from over. Management has requested an additional Ksh 6.67 billion from the government in the 2026/27 financial year to meet salary commitments, clear outstanding pension contributions, remit statutory deductions and implement obligations arising from the 2024 Return-to-Work Formula.
A separate court case involving about 40 employees is still pending, meaning part of the restructuring process will remain on hold until a ruling is delivered.
Members of Parliament acknowledged that Moi University has made progress in restoring learning after years of disruptions, but said lasting recovery will depend on sustained reforms and prudent financial management. They urged the institution to continue implementing measures that strengthen its financial position while safeguarding the quality of education.
For one of Kenya’s oldest public universities, the latest restructuring signals the difficult reality facing institutions of higher learning as rising operational costs, declining enrolment and limited funding continue to squeeze their budgets.
Leave a comment