The Moi University Council has addressed recent media coverage surrounding the institution’s challenges, including financial difficulties, staff industrial action, and operational uncertainty, in a comprehensive press statement aimed at clarifying the University’s current state and future direction.
Since its establishment, Moi University has graduated over 140,000 professionals who have significantly contributed to Kenya’s development across various sectors. Additionally, the University played a pivotal role in revitalising the country’s cotton industry through its 2006 acquisition of Rivatex East Africa Ltd, originally a research and training facility for the University’s Textile Engineering programme. Rivatex’s transition into a commercial production entity has provided much-needed market access for cotton farmers in the Rift Valley and Western Kenya.
Financial Challenges and Declining Student Enrolment
The Council highlighted severe financial strains as the root cause of the University’s operational difficulties. Moi University’s financial troubles stem from a reduction in government capitation and a decline in student enrolment. The introduction of the Differentiated Unit Cost (DUC) model has led to a drastic reduction in capitation funding from the government. Initially designed to cover 80% of the costs of academic programmes, government support dwindled to approximately 38% before the model was replaced.
The University had relied on revenue from privately sponsored students to bridge this funding gap. However, the 2016 Kenya Certificate of Secondary Education (KCSE) reforms, which made government sponsorship accessible to all qualifying students, significantly reduced this revenue stream. For the 2024/2025 academic year, Moi University received only 6,000 first-year students, far below its declared capacity of 14,000, further exacerbating the financial shortfall.
Payroll Crisis and Unpaid Deductions
The Council revealed that Moi University is grappling with a monthly payroll deficit of KES 314 million. This crisis was aggravated by a court ruling that mandated the University to implement the 2017-2021 Collective Bargaining Agreement (CBA) on a diagonal basis, increasing monthly payroll costs to KES 403 million. The resulting salary arrears have accumulated to approximately KES 1.2 billion.
Contrary to accusations of mismanagement, the Council clarified that delayed remittances of statutory and third-party deductions were due to insufficient funds. However, government intervention since September 2024 has enabled the University to resume full payment of gross salaries and begin remitting outstanding deductions.
Government Support and Sustainability Measures
The Council expressed gratitude for the ongoing support from the Ministry of Education, the National Treasury, and other governmental entities. This support includes a pledged initial financial package of KES 3.5 billion to address the payroll deficit and other pressing financial obligations.
To ensure long-term financial sustainability, the University is exploring various measures, including rationalising its payroll, disposing of non-core assets, forming new partnerships, and expanding research initiatives to diversify revenue streams.
Clarification on Capital Development Projects
Responding to allegations of mismanagement in capital development projects amounting to KES 2.2 billion, the Council refuted these claims as misleading. They stated that many of these projects are either donor-funded or still awaiting government disbursement. The ongoing investigations by the Ethics and Anti-Corruption Commission into procurement procedures will provide clarity on these matters.
Commitment to Transparency and Academic Stability
Dr. Humphrey Kimani Njuguna, Chair of the Moi University Council, reaffirmed the institution’s commitment to transparency and collaborative engagement with stakeholders, including staff unions, students, parents, and the local community. Efforts are underway to restore the academic calendar, with consultations ongoing to ensure a mutually beneficial resolution.
“We are optimistic that, with the right strategies and continued support, Moi University will emerge stronger and more resilient,” Dr. Njuguna stated. He called for patience and support from all stakeholders as the University navigates this difficult period and works towards a sustainable future.
Despite the challenges, the Council remains hopeful, emphasising its dedication to overcoming financial difficulties and securing Moi University’s position as a leading institution in Kenya’s higher education sector.
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