Moi University on the Brink of Collapse: Mounting Debts, Flawed Projects and Poor Leadership.
Moi University, a leading Kenyan institution founded in 1984, faces a severe crisis stemming from poor financial and administrative choices.
The university, instead of celebrating its 40th anniversary, grapples with a staggering Sh8 billion debt, student protests, and a faculty strike.
This situation has prompted the Parliamentary Public Investments Committee on Education to urge an Auditor-General investigation into the university’s financial records. Committee Chair Jack Wamboka also recommended a freeze on new projects and staff recruitment.
Key Issues Under Investigation
The Auditor-General has been tasked to audit Moi University’s accounts over the past five years and report findings within 60 days. The inquiry focuses on several financial irregularities:
- Sh4 billion in unremitted payroll deductions.
- Sh3 billion owed to Rivatex East Africa Limited.
- An additional Sh1.1 billion in pending bills as of June 2020.
Three unions—Uasu, Kusu, and Kudheiha—are urging an overhaul of Moi University’s leadership, accusing administrators of mismanagement.
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The unions report delayed salaries, non-remittance of pensions, loans, and third-party deductions, pushing workers to demand accountability.
Lecturers demand the university settle Sh8 billion in unremitted statutory contributions and backpay before they resume teaching.
The university council’s approach, which Uasu describes as dismissive, has prolonged the strike. Uasu Chapter Deputy Secretary, Jeremiah Nyabuta, stated the union would refuse any further agreements until the university addresses its financial obligations to staff.
Financial Mismanagement and Debt Escalation
According to the 2018/19 Auditor-General report, Moi University’s debt rose from Sh4.5 billion to Sh8 billion. Questionable expenditures include a Sh25 million gate, misappropriated Sh7.7 million in student fees, and a Sh3 billion loan for New Rivatex modernization.
Additionally, Kusu Chair Bob Odhiambo Ng’ura reported that 130 union members face bank lawsuits for loan defaults, with many cases filed in Eldoret’s Small Claims Court.
Enrolment dropped from 50,000 in 2015 to 27,000 in 2021 as Moi University closed campuses considered financially unsustainable. Government funding has also decreased due to the differentiated unit cost (DUC) model.
This, combined with higher staff costs, has strained the university’s budget. The university currently receives Sh97 million monthly from the government, far below its Sh403 million wage bill.
Chairman Humphrey Njuguna highlighted that financial struggles worsened after the government halted parallel degree programs that previously contributed Sh4 billion annually.
Proposed Solutions: Caretaker Management and Staff Reduction
In response to Moi University’s challenges, the National Assembly Education Committee, led by MP Julius Melly, recommended appointing a caretaker team to help stabilize the institution. The committee also suggested additional funding to assist in recovery efforts.
Meanwhile, Vice-Chancellor Prof. Isaac Kosgey’s memo hinted at layoffs as a cost-saving measure, though staff criticized the administration’s selective hiring practices.
In 2021, the Ethics and Anti-Corruption Commission (EACC) launched an investigation into claims of ghost workers on Moi University’s payroll.
Although the university employs around 10,000 staff, 1,000 positions are suspected to be fictitious. Prof. Kosgey responded that the institution had enhanced its HR management system to identify and remove ghost workers.
Uasu Secretary-General Constantine Wasonga described the crisis at Moi University as symptomatic of broader issues in Kenyan public universities, attributing the decline to severe administrative and financial missteps.
Moi University Student Organization (Muso) President Vincent Tarus echoed calls for the government to act, pushing for the replacement of the Vice-Chancellor.
Leadership Transition and Local Influence
The university’s leadership challenges have roots in a 2015 campaign by Uasin Gishu County leaders to replace acting VC Laban Ayiro with Prof. Kosgey, a local appointee. However, the same community now advocates for his removal, dissatisfied with the university’s deteriorating situation.
Despite the prevailing challenges, Prof. Kosgey claims Moi University is taking steps to generate additional revenue. Recently, the institution initiated an apple cultivation project aimed at both local and international markets, intending to expand to 500 acres within two years.
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Plans include pig, dairy, and poultry farming, along with a revival of Elimu millers. The university also intends to lease 1,500 acres for agricultural ventures, though this decision faces opposition from a group claiming ownership of the land.
Conclusion
The financial and operational crises at Moi University have highlighted extensive mismanagement and an urgent need for reform.
With mounting debt, dwindling enrolment, and faculty strikes, stakeholders across the board—including government officials, staff, and students—are calling for comprehensive solutions, from restructuring leadership to implementing income-generating projects, to secure the institution’s future stability.
Moi University on the Brink of Collapse: Mounting Debts, Flawed Projects and Poor Leadership.
