The National Assembly Committee on Education has raised serious concerns over Moi University’s financial sustainability, staff redundancy process, and mounting debt, questioning the institution’s leadership on transparency and compliance.
Appearing before the Committee chaired by Julius Melly (Tinderet), Moi University’s Acting Vice Chancellor Prof. Isaac Kiplagat and Acting Deputy Vice Chancellor Loice Maru defended the university’s controversial cost-cutting reforms. The lawmakers interrogated the university’s Sh8.8 billion debt burden, non-remitted union dues, and the looming closure of its Coast Campus.
Prof. Kiplagat told MPs that 376 staff members had been laid off as part of a restructuring exercise that began in 2022 following recommendations by PKF Consulting. The consultancy firm had warned that the institution’s financial position was untenable without drastic intervention. Redundancy, he said, was the only viable option after other strategies such as natural attrition and voluntary retirement failed to yield sufficient savings.
“We followed the Employment Act and began consultations with unions in 2022. The exercise is expected to save KSh 120 million monthly,” said Prof. Kiplagat. Severance and notice pay totaling KSh 167.4 million were issued on May 13, 2025, but the move has sparked legal battles with staff unions, with a court ruling expected by June 16.
Lawmakers questioned the legality, timing, and fairness of the layoffs. Jerusha Momanyi (Nyamira County) challenged the university’s claim of union consultations, noting that affected parties allege insufficient communication.
Kibra MP Peter Orero raised alarm over KSh 64.9 million in unremitted union dues, demanding answers on why deductions meant for workers’ unions — UASU, KUSU, and KUDHEIHA — had not been forwarded.
The Committee also expressed concern over the viability of academic programs and the planned closure of the Coast Campus due to low enrolment.
Committee Vice Chair Eve Obara (Kabondo Kasipul) criticized the university’s governance, stating, “This debt level raises serious questions about sustainability.”
University officials said they are working with the State Department for Higher Education and the Pending Bills Committee to address the financial crisis and uphold the welfare of affected staff.
