Moi University is preparing to restructure its operations, including reducing its workforce, as the institution seeks to recover from a financial crisis that has persisted for more than a decade.
University leaders told the National Assembly Education Committee that the move is part of wider efforts to stabilize the institution’s finances and ensure its continued operations.
Appearing before the committee on Thursday, Acting Vice Chancellor Prof. Kiplagat Kotut said the university is carrying out a workload assessment to determine staffing needs before implementing the planned layoffs.
He explained that the exercise is aimed at identifying employees whose roles are no longer necessary while retaining staff with active responsibilities.
The discussions followed a special audit of the university’s financial records for the year ending June 30, 2025, which highlighted the extent of the institution’s financial challenges.
According to the university, it has accumulated debts exceeding Ksh.8 billion, while pending bills have surpassed Ksh.10 billion.
Kabondo Kasipul MP Dr. Eve Obara questioned the university’s financial position.
“You have a deficit of Ksh.8.8 billion and liabilities exceeding the current assets by Ksh.8.6 billion… technically you are insolvent, ” he said.
Responding to the concerns, Moi University’s Chief Internal Auditor Gabriel Ogutu acknowledged the institution’s situation.
“The university is technically insolvent. That’s the truth, because numbers don’t lie” said Ogutu.
Prof. Kotut told lawmakers that the university could no longer sustain employees without assigned duties.
“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,” Kotut added.
National Assembly Education Committee Chairperson Julius Melly urged the university to present the workload report before any action is taken.
“Make sure you share that report before you start implementing it,” he said .
The university also revealed that it has already reduced its workforce over the past year. Deputy Vice Chancellor for Administration, Planning and Strategy Prof. Loice Maru said permanent and pensionable staff have been reduced from more than 2,000 to 1,763, while half of the more than 600 casual workers previously employed have also been released.
University officials attributed the staffing imbalance to a sharp decline in student enrolment, which at one point dropped from more than 40,000 learners to about 12,000, leaving the institution with a workforce that exceeded its operational needs.
Despite measures already taken, the Auditor General’s report indicates that the university remains under significant financial pressure.
University Council Chairperson Prof. Noah Midamba said management is also working to reduce costly legal disputes affecting the institution.
“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,” he said.
The latest restructuring plan comes nearly a year after the Employment and Labour Relations Court stopped the university’s attempt to dismiss about 900 employees, directing the institution to first engage unions through meaningful consultations.
As the university pursues another recovery strategy, attention is now expected to shift to whether the proposed reforms can restore its financial stability while complying with labour laws.
