Moi University to Reopen with Sh2.9 Billion Govt Aid for Financial Stability.
Moi University is scheduled to reopen on November 4 after the National Treasury pledged Sh2.9 billion to address the institution’s urgent financial and operational needs.
The university’s reopening follows interventions from both Parliament and the Higher Education State Department, as well as actions by the National Assembly’s Committee on Education.
The committee, led by Chairman Julius Melly, has taken critical steps to secure funding and restore university operations.
Funding Breakdown for University Support
The Committee on Education outlined a comprehensive funding plan to address Moi University’s immediate and ongoing financial requirements. Key allocations include:
- Sh300 million in scholarships for October, complementing Sh217 million disbursed in August.
- Sh219.9 million for tuition fees, adding to the Sh127.2 million provided earlier.
- Sh89 million in capitation funding for current students, following the Sh269 million released in August.
Join Teachers Updates on Facebook
The total funds will assist with pressing financial obligations, particularly for Sh807 million in staff salary arrears for the current and previous months.
To cover an additional Sh198 million gap, the university is expected to leverage its projected monthly revenue of Sh206 million. Furthermore, by November 15, the Treasury will release an additional Sh500 million to enhance financial stability.
Caretaker Committee and Management Reforms
In addition to financial support, a caretaker committee comprising representatives from the Executive, National Treasury, and Ministry of Education will be set up to oversee management and develop a sustainable recovery plan for Moi University.
This committee, working alongside the University Council and management, has already held meetings to ensure proper documentation of critical university data and to assess funding needs thoroughly.
Sh315 million per month in payroll support is estimated to sustain operations, while negotiations with creditors for Moi’s Sh2.4 billion in pending bills, as of July 2022, are ongoing.
Challenges Leading to Closure
Moi University was closed indefinitely on October 3 after a prolonged strike by lecturers and staff protesting unpaid salaries and other issues tied to the 2017-2022 Collective Bargaining Agreement (CBA).
Protests focused on delayed payments, unremitted pensions, and outstanding loan deductions.
The National Treasury responded by allocating Sh609 million this month to fund scholarships, tuition, and other student needs.
Last week, National Assembly Speaker Moses Wetang’ula expressed serious concern over the university’s closure, describing it as a national issue requiring urgent intervention.
Wetang’ula directed the Education Committee’s Chairman to secure a Ministry of Education statement on the university’s status and necessary actions for an expedited resolution.
Additionally, he urged Education Cabinet Secretary Julius Ogamba to appear before Parliament to present a detailed recovery plan for the university.
Long-Term Financial Support Requests
Moi University requested ongoing financial support of Sh315 million per month over two years, along with a one-time Sh2.4 billion allocation to settle outstanding debts and penalties on unpaid bills.
The institution also sought Sh1.05 billion to clear salary arrears under the 2017-2021 CBA.
ALSO READ: Police Officers Banned from Schools During KPSEA Exams
Melly raised concerns over delays in disbursements for loans and scholarships, as a court order currently restricts the government’s new funding model.
The Ministry of Education, through the Attorney-General’s Office, has filed an application to lift the court order to ensure funds can be released to universities and students promptly.
Moi University to Reopen with Sh2.9 Billion Govt Aid for Financial Stability.
Follow Teachers Updates on Facebook, LinkedIn, X (Twitter), WhatsApp, Telegram, and Instagram. Get in touch with our editors at [email protected].
Discussion about this post