Moi University Revives Staff Redundancy Plan After Court Clears Process

Moi University has revived plans to reduce its workforce after a court allowed the institution to restart a redundancy exercise aimed at cutting its rising wage bill and improving its financial position.

Appearing before a National Assembly committee, Acting Vice-Chancellor Prof. Kiplagat Kotut said the exercise is expected to reduce the university’s monthly payroll by about Sh100 million.

Kotut told lawmakers that the university has secured government approval and funding through the 2025/26 Supplementary Budget to implement the rightsizing programme.

The university had initially launched the redundancy exercise in 2025, but the process was suspended after the Universities Academic Staff Union (UASU) and the Kenya University Staff Union (KUSU) challenged it in court.

According to Kotut, the court in July 2025 directed the university to withdraw the redundancy notices but granted it permission to restart the process in accordance with the law.

He said another court case involving 40 employees is still pending, with the university awaiting the outcome before making any payments to the affected staff should the case be determined in its favour.

As part of efforts to lower personnel costs, Moi University has also seconded 56 employees to Kabarnet University College following its gazettement as a constituent institution.

The move is expected to reduce the university’s monthly wage bill by approximately Sh11 million.

Kotut said the university is also encouraging other public universities recruiting staff to give priority to qualified employees from Moi University as part of broader efforts to manage its workforce.

Despite the cost-cutting measures, the Acting Vice-Chancellor appealed for an additional Sh6.67 billion in recurrent funding for the 2026/27 financial year.

He said the funds are needed to meet payroll obligations, implement the 2024 Return-to-Work Formula, settle statutory payroll deductions, clear unremitted staff loan repayments and pay outstanding pension contributions.

Moi University has been grappling with financial challenges in recent years, prompting a series of reforms aimed at restoring its financial sustainability and ensuring continued delivery of academic programmes.