The ‘Mtu Wetu’ role in Moi University financial crisis

Moi

Moi University foresees a looming crisis after a constant derailment of operations within the institution, due to financial instability that has forced a possible layoff of staff.

The Eldoret-based Univesity has been struggling to pay salaries over the past recent years that have seen constant strikes, as lecturers down tools in protest of delayed dues.

Moi University

According to Moi University Vice-Chancellor, Isaac Kosgey, the University was unable to sustain itself, with the growing wage bill and had to consider alternatives

“The University is unable to sustain the growing wage bill and, as such, it has become necessary to undertake right-sizing of the human resolute in ensuring the sustainability of the University and its operations. Towards this end, the University is considering a reduction in staffing levels that will all for compulsory redundancies.”

In a letter to Universities Academic Staff Union (UASU)Prof Kosgey said the public institution is currently unable to sustain its growing wage bill since the University spends over 70 percent of capitation from the National Treasury to pay salaries.

Hence the University plans to reduce its workforce by declaring some members of its staff redundant.

“As you are aware, the University has been facing difficulties in meeting its wage bill obligations. Over the years, the University wage bill has been increasing, taking up over 70% of the Capitation from the Exchequer. This is, therefore, to notify you of the impending redundancy of staff due to the continued strain by the University to fully fund its wage bill and to align the human resource to the existing workload,” he added.

The varsity stumbled following an indefinite shut down by its management in October last year after workers and lecturers went on strike, paralyzing learning activities at the institution.

This was a result of claims from the workers that the University failed to implement the 2017/2021 Collective Bargain Agreement.

Disclosure in the 2018/2019 report by Auditor General Nancy Gathungu revealed that the institution is struggling to pay debts amounting to Ksh4.5 billion.

 

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