Cash-strapped Moi University plans fresh staff layoffs as debt tops Ksh.8B

The Moi University administration is to embark on a major restructuring plan, including reduction of its workforce as it fights for survival following over 10 years of a severe financial crisis.

The university’s Acting Vice Chancellor Prof. Kiplagat Kotut told the National Assembly Education Committee on Thursday that the institution is currently conducting a work-load analysis of its employees before laying off some in order to remain afloat.

The special audit of Moi University’s financial records for the year ended June 30, 2025, provided a platform to revisit the financial woes that have dogged the institution for over a decade now.

Prof. Kotut revealed that the university has accumulated debt of over Ksh.8 billion and pending bills which have crossed the Ksh.10 billion mark.

Kabondo Kasipul MP Dr. Eve Obara said: “You have a deficit of Ksh.8.8 billion and liabilities exceeding the current assets by Ksh.8.6 billion… technically you are insolvent.”

Gabriel Ogutu, Chief Internal Auditor of Moi University, responded: “The university is technically insolvent. That’s the truth, because numbers don’t lie.”

Prof. Kotut told the National Assembly Education Committee of a plan to rescue the institution including reduction of its workforce.

“We realized some people have actually not been teaching. They have been here doing nothing, parasiting on others. So, we are saying if you have not been doing anything why don’t we let you go? But those that have work load we don’t want to touch you,” he said.

National Assembly Education Committee Chairperson Julius Melly: “Make sure you share that report before you start implementing it.”

Prof. Loice Maru, Deputy Vice Chancellor of Administration, Planning and Strategy said: “Since we came in early last year, the number of staff who we had on permanent and pensionable were over 2,000. Currently, we have 1,763. We had over 600 casual workers, last year in April we were able to reduce 300 of them.”

The university said the workforce had remained high despite the number of students dropping drastically from over 40,000 to about 12,000 at some point during the crisis.

The Auditor General's report still shows the university is in the red despite the measures.

Prof. Noah Midamba, the university council Chairperson: “What we are doing is to thin it down and do away with court cases. What is currently happening is court cases with regard to the former VC.”

The plan comes barely a year after the Employment and Labour Relations Court blocked the university’s plan to fire about 900 employees last year, directing the cash-strapped institution to first hold meaningful consultations with union leaders.