Cash-Strapped Moi University Seeks Sh800 Million Government Bailout

NAIROBI, Kenya-Besieged Moi University is appealing to the national government for a Sh800 million bailout to stabilize its deteriorating financial position, as years of liquidity struggles threaten to cripple its operations.

In a presentation to the National Assembly’s Departmental Committee on Education, Vice Chancellor Kiplagat Kotut painted a grim picture of the university’s finances, warning that without urgent intervention, the institution’s ability to function could collapse.

“To achieve financial sustainability, the University humbly requests for this Committee’s support and intervention,” the report reads.

“This support is necessary for stability, growth, and sustainability.”

The institution is seeking Sh450 million in monthly government support to cover payroll costs for the next year, an effort to keep staff salaries on track even as internal reforms slash expenses.

 According to the VC, Moi University has already begun a painful downsizing process that has seen over 1,200 employees shown the door.

Of these, 330 contract workers were released earlier in the year, while 886 permanent employees are set to be declared redundant. The mass layoffs are expected to cut the university’s wage bill by Sh120 million per month.

Despite the ongoing restructuring, Moi’s financial troubles remain dire. The university is also seeking Sh1.26 billion to settle salary arrears and pending pension contributions, following a court order issued in 2021.

Aside from recurrent expenditure, Moi University is pushing for fresh capital injections to revive stalled infrastructure projects.

Among the priority needs are Sh4.5 billion to complete the Science Complex, Sh400 million for a new health science building, and Sh230 million to finish an Amphitheatre aligned with Kenya’s creative economy blueprint.

In a bid to grow its revenue streams, the university is leaning on a recent government decision to increase its student capacity from 8,000 to 13,000.

It has also enhanced research funding, jumping from Sh200 million to over Sh500 million annually and created a Directorate of Resource Mobilization.

Additional diversification strategies include commercializing its agricultural land, assembling and selling digital devices, and expanding online and blended learning through the Institute of Open, Distance and e-Learning (IODeL).