Moi University To Save Sh120 Million Monthly After Staff Layoffs

Moi University is set to save Sh120 million each month following a mass layoff of staff, but Members of Parliament have raised serious concerns about the university’s financial management and how the retrenchment was handled.

During a session with the National Assembly Committee on Education, chaired by Tinderet MP Julius Melly, the university’s leadership was grilled on a wide range of issues, including its Sh8.8 billion debt, unpaid union dues, and the planned closure of its Coast Campus due to low enrolment.

The committee summoned Moi University’s Acting Vice Chancellor Prof. Isaac Kiplagat and Acting Deputy Vice Chancellor Loice Maru to explain the measures taken to address the financial crisis. Melly questioned the university’s rationale for the layoffs, saying MPs were worried about the impact on affected staff.

“The committee is deeply concerned about the livelihoods of the affected employees. We want to be sure that legal procedures were followed and that redundancy was not used to dodge financial obligations,” said Melly.

According to university officials, the decision to downsize began in 2022 after PKF Consulting conducted a review that found the institution’s finances unsustainable due to declining student numbers and a ballooning wage bill. Prof. Kiplagat said retrenchment was a last resort after other cost-cutting options like voluntary retirement and natural attrition failed.

“This was a last resort. We followed the Employment Act and began consultations with unions as early as 2022,” he told MPs. “Once fully implemented, we expect to save about Sh120 million per month.”

He added that a total of 376 staff were affected, and the university will pay Sh167.4 million in severance and notice dues. Redundancy letters were issued on May 13, 2025, but the move has triggered legal battles with trade unions. A report on the case is expected by June 16, 2025.

The MPs questioned the timing and transparency of the layoffs, as well as the university’s failure to remit union dues. The university admitted it owes Sh64.9 million in unremitted deductions — Sh31.9 million to the Universities Academic Staff Union (UASU), Sh21.4 million to the Kenya University Staff Union (KUSU), and Sh11.5 million to the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA). However, officials said remittances resumed in September 2024.

Lawmakers also raised concerns about the quality and relevance of the university’s academic programs. Moi University currently runs five campuses with 65 undergraduate and 194 postgraduate programmes, but low student intake has forced it to plan the closure of the Coast Campus.

“We must reflect on whether the academic programmes offered are aligned with national priorities and student demand,” said Hon. Christine Oduor. She urged the university to consider campus closures only as a last option.

Prof. Kiplagat confirmed that the university’s total debt includes unpaid staff loans, statutory deductions, and pending supplier payments. Under a return-to-work deal with staff, Moi University still owes Sh1.6 billion.

He said the institution is working with the State Department for Higher Education and the Pending Bills Committee to resolve its financial troubles.