Moi University, a once-celebrated institution, is now grappling with severe financial challenges that have led to a lecturers’ strike and its subsequent closure. Moi University staff during the official handing over of the university gate. The university has produced over 140,000 graduates who significantly contribute to Kenya’s development. What has led to Moi University’s woes?
According to the university council, chaired by Humphrey Kimani Njuguna, a drastic reduction in government funding has worsened the institution’s financial crisis. Government grants, which previously accounted for 80% of the cost of academic programs, have dwindled to just 38%. “The 42% gap revenue was supposed to be met through internal revenues. The university relied on the privately sponsored students programme to meet this gap,” the council stated.
For the 2024/2025 financial year, which began in July, the university’s monthly capitation was slashed from KSh 403 million to KSh 89 million, creating a payroll deficit of KSh 314 million. The situation was further aggravated by a court directive to implement the 2017/2021 payroll adjustments on a diagonal basis, instantly creating salary arrears of KSh 1.2 billion, which remain unresolved. Adding to the financial strain, the university has experienced a sharp decline in student enrollment, a critical revenue source. Additionally, of the 47,000 students who applied for placement in 2024/2025, only 6,000 were accepted, far below the institution’s declared capacity of 14,000.
The council noted that this mismatch might only be corrected in the 2025/2026 academic year. “For the 2014/2015 academic year, about 6,000 first-year students were placed in the institution as against a declared capacity of 14,000 students and over 47,000 applicants to the undergraduate programmes,” he asserted. Did Moi University squander KSh 2.2b in development? Responding to allegations of mismanagement, Kimani dismissed reports that KSh 2.2 billion had been misappropriated in capital development projects. He clarified that this figure represents the total cost of projects under scrutiny, many of which are yet to commence or are awaiting government funding.
The Ethics and Anti-Corruption Commission is currently investigating the matter. “Reports suggesting that over KSh 2.2 billion was squandered in capital development projects are inaccurate and misleading,” said the chairman. Kimani assured stakeholders that the council is committed to restoring normalcy to the university’s academic calendar. He emphasised that ongoing consultations with staff unions aim to reach a mutually beneficial resolution that prioritises student welfare and the institution’s stability.
by Nancy Odindo