Moi university to lay off employees amid financial challenges

Moi University has announced plans to declare redundancy as part of efforts to address its financial difficulties, which have been exacerbated by a significant drop in student enrollment.

In a notice, the university’s Acting Vice Chancellor, Prof. Kiplagat Kotut, informed employees that the decline in student numbers has led to reduced revenue, making it challenging for the institution to meet its financial obligations, including paying staff salaries.

The notice highlights that the decision to initiate redundancy was made necessary by the tough economic conditions that have made it difficult for the university to maintain its workforce.

“As a result, we are compelled to review our operations and adjust the workforce accordingly so as to ensure sustainability of the University,” Kotut said.

According to the notice, the redundancy will primarily affect employees who are members of the University Academic Staff Union (UASU) as per the Collective Bargaining Agreement (CBA) between the union and the university.

The management assured that consultations with the affected employees and union representatives would take place during the notice period, as required by law and the CBA.

The affected staff members will be entitled to severance pay, salary in lieu of notice, payment for accrued leave days, and any other outstanding benefits due to them.

“We will ensure full compliance with the provisions of the Employment Act, individual contracts, and the UASU CBA 2012/2013,” Kotut said in the notice.

The announcement comes on the heels of a series of financial challenges the university has faced. The institution had already laid off 324 workers earlier in March, cutting costs in an attempt to improve its financial position.

The decision was attributed to a sharp decline in student enrollment, which dropped from 50,000 in 2015 to 27,000 in 2021, significantly reducing the university’s revenue.

Strike notice

Recently, lecturers at the institution issued a seven-day strike notice due to delayed February 2025 salaries. They had vowed to begin the strike on March 28, 2025, unless the university meets the union’s demands.

The university’s lecturers had previously downed tools in December 2024 over a three-month salary dispute, which disrupted learning.

According to the Universities Academic Staff Union (UASU) Secretary-General, Constantine Wasonga, the union has accused the university management of not adhering to the Return-to-Work-Formula agreement signed in December 2024.

The deal was meant to resolve the Sh6.6 billion salary and statutory deductions debt, but the university is still struggling to meet its financial obligations.

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“We are all aware of the financial challenges facing the university that have led to a delay in payment of the February 2025 salary. Efforts are being made by the university management and council to resolve the issues responsible for the delay,” Kotut said in an internal memo.

The university’s financial troubles have also been compounded by an additional Sh1.8 billion allocated by the National Treasury last month, with the university’s operational budget rising significantly. Despite these efforts, however, the institution’s financial struggles continue to impact its staff and operations.

In a bid to address its financial crisis, Moi University has also been forced to reduce operational costs by terminating contracts of several staff members, mainly from departments such as security, cleaning, hostels and the library.

The university’s continued financial challenges, including its mounting debts and the struggle to pay salaries, has severely affected operations leading to reduced student enrollment.