Moi University Sacks 800 Workers Amid Financial Crisis

Moi University has laid off 800 employees in a major cost-cutting move driven by financial difficulties affecting public universities nationwide.

The sackings follow a month-long redundancy notice issued by the institution. In a circular dated May 13, 2025, Vice Chancellor Prof. Kiplagat Kotut informed staff that the university had concluded its “Right-Sizing” exercise after wide stakeholder consultations.

“All affected staff are advised to collect their retention or redundancy letters from Wednesday, May 14 to Friday, May 23, 2025, during official working hours,” the circular read. Employees were asked to carry their personal file numbers and national ID cards when collecting the notices.

In one of the redundancy letters signed by Deputy Vice Chancellor in charge of Administration, Planning and Strategy, Prof. Loice Maru, the university cited severe financial constraints as the reason for the job cuts.

“Following a thorough review of the University’s operational needs and financial sustainability, your position has been identified as one of those affected by the redundancy process,” the letter read.

It added: “This decision is not based on your performance or conduct, but is instead a necessary response to the financial challenges facing the university.”

Affected workers were promised terminal benefits, including notice pay or payment in lieu of notice, severance pay, accrued leave days, and any other dues as per their employment terms.

The move comes as Kenya’s public universities struggle under a massive debt burden, with pending bills now totaling Sh72.2 billion.

Parliament’s Education Committee has warned that the sector is on the verge of collapse unless urgent funding is provided.

Top on the list of indebted institutions is the University of Nairobi, which owes Sh13.2 billion. It is followed by the Technical University of Kenya (Sh11.1 billion), Kenyatta University (Sh10.6 billion), and Egerton University (Sh10.1 billion).

During a recent session with MPs, Basic Education Principal Secretary Julius Bitok appealed to lawmakers for increased funding to save the institutions.

“That is why we are here pleading with you to ensure that we get the right budget,” Bitok said.

MPs expressed concern over the allocation of funds to new capital projects, even as ongoing ones—some nearly complete—remain underfunded.

“We need to know—why can’t we just finish the old projects first before starting new ones?” asked Teso South MP Mary Emase.

The Education Committee is also investigating why some universities, including the University of Eldoret and the Open University, received more funding than they had requested in the budget policy statement.

Committee Chair Julius Melly said universities must explain how they plan to handle the ballooning pending bills.

Meanwhile, the Higher Education Loans Board (HELB) is also facing a budget shortfall, having been allocated Sh41.1 billion against a requirement of Sh76.3 billion—leaving a funding gap of Sh35.1 billion.