Moi University has opened up about the financial and administrative challenges that have severely impacted its operations in recent years.
In a detailed four-page statement, the university’s Chairman, Dr. Humphrey Kimani, acknowledged that the institution’s financial troubles have strained its ability to maintain stability and growth.
Dr. Kimani pointed to several key factors contributing to the university’s difficulties, including a significant reduction in revenues, rising operational costs, and changes in student sponsorship and enrollment patterns.
One of the most notable impacts came from the 2016 reforms to the Kenya Certificate of Secondary Education (KCSE) that phased out self-sponsored students.
This left Moi University increasingly dependent on government-sponsored students, which further squeezed its financial resources.
“The major challenge at Moi University is inadequate finances. For the past decade, the institution has struggled to raise sufficient revenue to meet its expenditure,” Dr. Kimani stated.
The university also blamed the government’s new university funding model for exacerbating its financial situation.
Under the new system, the government’s capitation grant has steadily decreased, dropping from an expected 80% of the cost of an academic program to only 38% currently.
This has created a significant revenue shortfall, which was meant to be compensated by internal sources.
However, the gap has proven difficult to fill.
Additionally, the university has faced a sharp decline in undergraduate enrollment, which is a major source of its revenue.
For the 2024/2025 academic year, Moi University admitted only 6,000 first-year students, far below its capacity of 14,000, despite receiving over 47,000 applications.
Further complicating the financial picture, a court ruling mandating the full implementation of the 2017/2021 Collective Bargaining Agreement (CBA) has led to a sharp increase in payroll costs, with monthly wages now totaling Sh403 million.
In contrast, the government’s capitation grant for the 2024/2025 financial year was reduced to just Sh89 million, leaving a monthly shortfall of Sh314 million.
To make matters worse, Moi University has accumulated salary arrears totaling Sh1.2 billion.
In response to these financial pressures, Moi University has sought additional support from the Ministry of Education, the National Treasury, and other stakeholders.
The government has pledged an initial Sh3.5 billion to help address the immediate financial gaps, including paying salary arrears.
To ensure long-term sustainability, the university is also implementing internal measures such as payroll rationalization and the disposal of non-essential assets.
Moi University also responded to allegations of financial mismanagement, particularly claims that Sh2.2 billion allocated for capital projects had been misused.
The university rejected these allegations, explaining that the amount in question represents the total cost of various projects, some of which were funded by donors and had undergone audits.
The Ethics and Anti-Corruption Commission (EACC) is currently investigating the matter to ensure compliance with financial regulations.
In the face of these significant challenges, Moi University is working to stabilize its financial position while continuing to serve its students and uphold its academic mission.
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