Moi University announces mass layoffs as cash crunch bites

By , K24 Digital
On Tue, 5 Jul, 2022 13:30 | 2 mins read
Moi University main campus in Eldoret has been closed indefinitely. [PHOTO | FILE]

Moi University has announced plans to lay off some of its staff members, citing dwindling fortunes.

In a letter to Universities Academic Staff Union (UASU), Moi University Vice-Chancellor Prof. Isaac Kosgey said the public institution is currently unable to sustain its growing wage bill.

Prof. Kosgey noted that the University spends over 70 percent of capitation from the National Treasury to pay salaries.

"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.

"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," the letter in our possession dated Monday, July 4, 2022, reads in part.

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

"Towards this end, the University is considering a reduction in staffing levels that will all for compulsory redundancies," Prof. Kosgei added.

"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."

The Eldoret-based institution has been struggling to pay salaries over the recent years, with lecturers downing tools severally in protest of delayed dues.

Moi University workers' strike

In October last year, the management was forced to shut down the varsity indefinitely after workers and lecturers went on strike, paralyzing learning activities at the institution.

The workers accused the University of failing to implement the 2017/2021 Collective Bargain Agreement (CBA).

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

Related Topics