Moi University.Source: MOI

Moi University has justified its decision to lay off 376 staff members, citing a worsening financial crisis that has plunged the institution into a debt of Ksh.8.8 billion. The university says the retrenchment, which began in May 2025, was a last resort meant to stabilise operations and save costs.

Appearing before the National Assembly Committee on Education on Tuesday, Acting Vice Chancellor Prof. Isaac Kiplagat and Acting Deputy VC Loice Maru explained that the layoffs were guided by recommendations from a 2022 financial audit conducted by PKF Consulting. The audit had warned that the institution’s operations were unsustainable without immediate structural reforms.

“We followed the Employment Act and began consultations with staff unions as early as 2022,” said Prof. Kiplagat. “Other interventions like voluntary retirements and natural attrition failed to achieve the desired results.”

According to the university, the retrenchment is expected to save Moi University approximately Ksh.120 million per month. Severance and notice payments to affected staff will total Ksh.167.4 million.

However, members of the Education Committee raised concerns over the legality, fairness, and transparency of the exercise. Tinderet MP Julius Melly, the committee chairperson, said the panel was “deeply concerned” about the livelihoods of those affected.

“We want assurance that due process was followed and that the university is not using redundancy as a shortcut to evade its financial obligations,” said Melly.

Nyamira County MP Jerusha Momanyi questioned whether staff unions had been fully consulted. “The unions are disputing the process. Was this fair and humane?” she asked.

Kibra MP Peter Orero took issue with the university’s failure to remit union dues, demanding clarity on the whereabouts of the funds.

“It is unacceptable for an institution of higher learning to withhold deductions meant for union subscriptions. Where is the money going?” he posed.

The university admitted to owing Ksh.64.9 million in unremitted dues, broken down as Ksh.31.9 million to the Universities Academic Staff Union (UASU), Ksh.21.4 million to the Kenya University Staff Union (KUSU), and Ksh.11.5 million to KUDHEIHA. Management, however, said remittances resumed in September 2024.

MPs also questioned the viability of the university’s academic offerings and raised alarm over the planned closure of its Coast campus due to low student enrollment. Moi University currently runs five campuses, offering 65 undergraduate and 194 postgraduate programmes.

“We must assess whether these programmes meet national priorities and student needs,” said Women Representative Christine Oduor. “Closing campuses should be the last option.”

Committee Vice Chair and Kabondo Kasipul MP Eve Obara warned that the university’s crisis points to deeper governance failures. She urged the Ministry of Education to investigate the root causes and propose lasting solutions to the challenges facing public universities.