Cash-Strapped Moi University to Lay Off Hundreds of Workers

Moi University has announced plans to lay off hundreds of its workers as part of measures to cut costs and keep the institution afloat.

Vice-Chancellor Prof. Isaac Kosgey in a notice said the university’s wage bill has become unsustainable, noting that they spend up to 70 percent of the funds allocated by the government to pay salaries.

“…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,” reads the notice.

"With the continued decline of revenues, 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.”

As a result, the university plans to reduce its workforce by declaring some of its reported 10,000 members of staff redundant.

“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,” Kosgey added.

An Auditor General’s report for 2020 revealed that the Eldoret-based university was struggling to pay debts amounting to over Sh4.5 billion.

The report further indicated that the university’s revenue for the year ended June 2020 was Sh7.8 billion against an expenditure of Sh8.3 billion, thus recording a deficit of Sh504 million.

It attributed the situation to a reduction in income from privately sponsored students and a decline in the number of students qualifying to join universities.