Moi University defends layoff of 376 staff, citing Sh8.8 billion debt crisis

Moi University has defended its decision to lay off over 300 workers, saying the move was a last resort aimed at addressing a worsening financial crisis that has left the institution with a debt of Sh8.8 billion.

The institution now says it expects to save Sh120 million monthly from the retrenchment, even as MPs raised questions over the legality, fairness and timing of the redundancy exercise.

Appearing before the National Assembly Committee on Education on Tuesday, Acting Vice Chancellor Prof Isaac Kiplagat and Acting Deputy Vice Chancellor Loice Maru said the layoffs followed a 2022 financial review by PKF Consulting, which warned that Moi University’s operations were unsustainable without major reforms.

“This was a last resort. We followed the provisions of the Employment Act and held consultations with the unions from as early as 2022,” Kiplagat said, noting that previous measures, including natural attrition and voluntary retirement, failed to provide adequate savings.

Committee Chairperson and Tinderet MP Julius Melly led his colleagues in grilling the university’s management on their financial decisions, particularly on whether the downsizing was legally sound and transparent.

Concerned

“The Committee is deeply concerned about the livelihoods of the affected staff. We want assurance that the legal procedures were followed and that the university is not using redundancy as a shortcut to evade its financial obligations,” Melly said.

The university said a total of 376 staff were affected by the redundancy.

Notices were issued on May 13, 2025, with severance and notice pay totalling Sh167.4 million. However, the move triggered legal challenges from trade unions and court proceedings.

MPs questioned how the exercise was conducted, with Nyamira County MP Jerusha Momanyi raising concerns over consultation with staff unions.

“You’ve laid off hundreds of staff, yet the unions say they were not adequately consulted. Was this exercise fair and humane?” she posed.

Unremitted union dues

Kibra MP Peter Orero criticised the university over unremitted union dues, demanding clarity on where the funds had gone.

“It is unacceptable for an institution of higher learning to withhold deductions meant for union subscriptions. Where is the money going?” Orero posed.

The university management 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 and Hospital Workers (KUDHEIHA). However, they noted that remittances resumed in September 2024.

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MPs also raised concerns about the viability of the university’s academic programmes and the planned closure of its Coast campus due to low enrolment. The university currently runs five campuses and offers 65 undergraduate and 194 postgraduate programmes.

“We must reflect on whether the academic programmes offered are aligned with national priorities and student demand,” Women Representative Christine Oduor said, warning that closing campuses should be considered only as a last resort.

Committee Vice Chairperson, also Kabondo Kasipul MP, Eve Obara, said Moi’s financial situation points to deeper issues in governance.

“This level of debt raises serious concerns about governance and sustainability,” Obara said.

In response, Prof Kiplagat said the university is working closely with the State Department for Higher Education and the Pending Bills Committee to address its financial challenges and stabilise operations.