Moi University has come clean on the causes and timeline of its financial and administration downfall.
In a four-page document, Moi University Chairman Dr Humphrey Kimani has admitted that the financial and operational challenges have tested the institution’s resilience and ability to maintain stability.
Further, he has said that troubles came from a combination of reduced revenues, increasing costs, and systemic changes in student sponsorship and enrollment.
For instance, the 2016 Kenya Certificate of Secondary Education (KCSE) reforms significantly impacted the university’s income by phasing out self-sponsored programs.
The move left the institution reliant on government-sponsored students.
“The major challenge at Moi University is inadequate finances because the institution for the past decade or so, has not been able to raise revenues sufficient to meet the expenditures,” he stated.
Also Read: Moi University Explains Why Students Have Been Pursuing a Degree for 9 Years
Moi University Blames Ruto’s University Funding Model
According to the university, since the introduction of the new University funding model, the government has progressively reduced the capitation grants from an anticipated 80% of the cost of an academic program to about 38% at the time of its replacement.
The 42% gap in revenue was supposed to be met through internal revenues.
Additionally, undergraduate enrollment, which forms the bulk of its revenue, has declined dramatically. In the 2024/2025 academic year, only 6,000 first-year students were admitted against a capacity of 14,000, despite over 47,000 applications.
Moreover, a court directive mandating diagonal implementation of the 2017/2021 Collective Bargaining Agreement (CBA) raised monthly payroll costs to Ksh403 million.
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Meanwhile, government capitation was reduced to Ksh89 million for the 2024/2025 financial year, leaving a monthly payroll shortfall of Ksh314 million. Accumulated salary arrears of Ksh1.2 billion have further strained the institution’s finances.
In response, Moi University has engaged the Ministry of Education, the National Treasury, and other stakeholders to secure additional financial support.
Also Read: Fresh Blow to Moi University as Court Freezes Its Accounts Over Millions Owed to Doctors
Financial Mismanagement at the Institution
At the same time, the university indicated that the government has pledged an initial Ksh3.5 billion to address immediate needs, including salary gaps and arrears.
Further, the university is also implementing measures such as payroll rationalization and the disposal of non-core assets to ensure sustainability.
Addressing claims of financial mismanagement, including allegations of misusing Ksh2.2 billion on capital projects, the university has noted that they have been dismissed as misleading.
The university clarified that the amount represents total project costs, with some donor-funded and audited. Investigations by the Ethics and Anti-Corruption Commission are ongoing to ensure compliance with legal frameworks.
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