Wednesday, 18 June, 2025
Education Committee questions Moi University over staff redundancies, union dues and financial status
Parliament Buildings June 17, 2025
Members of the National Assembly Committee on Education have raised concerns over Moi University’s financial health and its handling of a staff downsizing exercise.
The Committee, chaired by Hon. Julius Melly, met with Moi University’s Acting Vice Chancellor Prof. Isaac Kiplagat and Acting Deputy Vice Chancellor Loice Maru to interrogate the status of ongoing institutional reforms, the University’s Sh8.8 billion debt burden, union dues arrears, and the looming closure of its Coast Campus.
Committee Chairperson, Hon. Julius Melly (Tinderet), pressed the University on its financial decisions and the rationale behind the massive layoffs.
“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,” said Hon. Melly.
In their presentation, the university officials
disclosed that the right-sizing exercise began in 2022 following a review by PKF Consulting, which found the university's financial position untenable without significant government support. The review revealed that Moi University had been operating beyond its means due to declining student enrolment and a ballooning wage bill.
Prof. Kiplagat told the lawmakers that redundancy was the only feasible option after other measures — including natural attrition and voluntary retirement — failed to offer the scale of savings needed.
“This was a last resort. We followed the provisions of the Employment Act, and held consultations with the unions from as early as 2022,” said Prof. Kiplagat. “We expect to save approximately KSh 120 million monthly once the exercise is complete.”
The University confirmed that 376 staff members were affected, with severance and notice pay totaling KSh 167.4 million. The redundancy notices were issued on May 13, 2025, sparking legal battles with unions. Court proceedings are ongoing, with a report expected by June 16.
Committee Members questioned the timing, transparency, and legal compliance of the exercise.
“You’ve laid off hundreds of staff, yet the unions say they were not adequately consulted. Was this exercise fair and humane?” asked Hon. Jerusha Momanyi (Nyamira County).
MPs also queried the University on unpaid union dues, with Hon. Peter Orero (Kibra).
“It is unacceptable for an institution of higher learning to withhold deductions meant for union subscriptions. Where is the money going?” asked Hon. Orero.
The University admitted it owes KSh 64.9 million in unremitted union deductions — KSh 31.9 million to UASU, KSh 21.4 million to KUSU, and KSh 11.5 million to KUDHEIHA — but has resumed remittances since September 2024.
Lawmakers also raised concern over the viability of Moi University’s academic programs. The institution operates five campuses and offers 65 undergraduate and 194 postgraduate programmes, but it plans to close the Coast Campus due to low enrolment.
“We must reflect on whether the academic programmes offered are aligned with national priorities and student demand,” said Hon. Christine Oduor, adding that the closure of campuses should be the last option.
Prof. Kiplagat confirmed the University’s total debt stands at Kshs 8.8 billion, including pending staff loans, statutory deductions, and unpaid suppliers. Under the staff return-to-work agreement alone, the University owes Kshs 1.6 billion.
“This level of debt raises serious concerns about governance and sustainability,” said Committee Vice Chair Hon. Eve Obara (Kabondo Kasipul).
The Vice Chancellor stated it is working closely with the State Department for Higher Education and the Pending Bills Committee to resolve the financial crisis.