Moi University council announces reforms to address persistent financial woes

The troubled Moi University is set for a major reform as its council has outlined a series of measures to address the institution's long-standing financial challenges. These challenges have led to significant disruptions, including a temporary closure and staff industrial action.

In a statement, the council attributed the university's financial woes to reduced government funding and declining student enrolment, which have worsened over the years.

The council acknowledged that the problems could not be resolved immediately but assured stakeholders of ongoing consultations to ensure the institution’s long-term stability.

According to the council, the primary issue is a severe revenue shortfall, making it difficult to meet operational expenses, including staff salaries.

"Government funding has steadily decreased over the past decade, with the differentiated unit cost model reducing funding from the expected 80 per cent to just 38 per cent of programme costs," the council said.

Previously, the university relied on revenue from private student enrolment to bridge the gap. However, the elimination of the private sponsorship model in 2016 further strained its finances.

A significant decline in student enrolment has also worsened the situation. For the 2024/2025 academic year, the university admitted only 6,000 first-year students, far below its capacity of 14,000.

"Efforts are underway to address this underutilisation, with discussions ongoing between the council and government agencies to explore solutions, expected to take effect in the 2025/2026 academic year," the council said.

Delayed salary payments

The financial difficulties have led to delayed salary payments and unremitted statutory deductions.

The council clarified that the delays were not due to mismanagement but rather a lack of funds to cover both payroll and deductions.

Recent government support has enabled the university to pay full salaries and remit deductions as of September 2024.

The government has also pledged Sh3.5 billion in financial support to help the university meet payroll obligations and other urgent needs. The Ministry of Education and the National Treasury have committed to disbursing the necessary funds to ensure uninterrupted operations.

In response to media reports claiming that Sh2.2 billion had been misused on capital development projects, the council stated that these allegations were inaccurate.

It clarified that the quoted amount represents the total cost of various projects, many of which are still in the planning or funding stages.

Some projects are donor-funded, and external audits are ongoing to ensure proper use of funds.

The Ethics and Anti-Corruption Commission (EACC) is also reviewing procurement decisions related to these projects.

Looking ahead, the council reaffirmed its commitment to financial sustainability by diversifying revenue sources.

Plans include expanding research initiatives, building partnerships, and exploring income-generating opportunities to reduce dependence on government funding.

“We are optimistic that with continued government support and by implementing strategic measures, Moi University will emerge stronger and more resilient,” the council said.