Moi University’s top leadership came under intense scrutiny Tuesday as lawmakers questioned its mass staff redundancies, ballooning debt, and failure to remit union dues.
Nairobi – The National Assembly Committee on Education, led by Chairperson Julius Melly, met with Acting Vice Chancellor Prof. Isaac Kiplagat and Acting Deputy Vice Chancellor Loice Maru to address financial and administrative concerns surrounding the public university.
The inquiry focused on Moi’s KSh 8.8 billion debt, the termination of 376 staff members, and the planned closure of its Coast Campus due to low enrollment.
“The Committee is deeply concerned about the livelihoods of the affected staff,” said Melly. “We want assurance that proper legal procedures were followed and that redundancy is not being used to bypass financial responsibility.”
Prof. Kiplagat told the Committee that the staff reduction exercise began in 2022 after PKF Consulting reviewed the university’s finances and flagged unsustainable operations. He said shrinking student enrollment and a growing wage bill made the restructuring inevitable.
“This was a last resort,” Kiplagat explained. “We followed the Employment Act, engaged unions starting in 2022, and expect to save around KSh 120 million per month once the process concludes.”
The layoffs, announced on May 13, 2025, have triggered legal battles with labor unions. The university said it has spent KSh 167.4 million on severance and notice pay. A court ruling on the matter is expected by June 16.
Lawmakers challenged the university on whether the process respected workers’ rights.
“You’ve laid off hundreds, yet unions claim they weren’t adequately consulted. Was this fair or humane?” asked MP Jerusha Momanyi (Nyamira County).
Peter Orero (Kibra) demanded answers on why Moi withheld union deductions.
“It is unacceptable for a university to fail to remit union dues. Where did the funds go?” he asked.
The university confirmed it owes KSh 64.9 million in unpaid dues: KSh 31.9 million to the Universities Academic Staff Union (UASU), KSh 21.4 million to the Kenya University Staff Union (KUSU), and KSh 11.5 million to the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA). Officials said remittances resumed in September 2024.
Beyond labor disputes, MPs raised concern about the sustainability of Moi’s academic programs. The institution runs five campuses and offers 259 degree programs 65 undergraduate and 194 postgraduate. But the Coast Campus is slated for closure.
“We must consider if these programs align with national goals and student demand,” said Committee member Christine Oduor.
Prof. Kiplagat acknowledged the university’s total debt includes unpaid staff loans, statutory deductions, and obligations to suppliers. He said KSh 1.6 billion is owed under a staff return-to-work agreement alone.
“This level of debt raises serious concerns about governance and sustainability,” said Committee Vice Chair Eve Obara (Kabondo Kasipul).
Kiplagat said the university is working with the State Department for Higher Education and the Pending Bills Committee to find a path forward.
The Committee is expected to review Moi University’s full financial records and return a report on its compliance with employment and education standards later this month.
