Moi University expects to save Ksh1.44 billion annually from its cost-cutting measures, which have included the sacking of 376 staff members, university officials have told the National Assembly's Education Committee.
The layoffs, announced on May 13 this year, included severance and notice pay totaling Ksh167.4 million and have since resulted in legal disputes with workers’ unions.
On June 17, the committee, led by Tinderet MP Julius Melly, met with Moi University’s acting Vice Chancellor, Loice Maru, to discuss several issues, such as the Ksh8.8 billion debt, unpaid dues to unions, and the potential closure of its Coast campus.
Speaking to the committee, Kiplagat said that the layoffs were a last resort after other cost-cutting measures, such as natural retirements and voluntary exits, failed to generate sufficient savings.
He added that the university is working on saving Ksh120 million every month once the legal process ends.
University officials responded by explaining that the staff cuts began in 2022 following a financial review by a consulting firm.
“This was a last resort. We followed the law and held talks with unions since 2022. Once the process ends, we expect to save about Ksh120 million every month,” Kiplagat said.
He revealed that the university's debts amounting to Ksh8.8 billion include unpaid staff loans, unremitted statutory deductions, and debts to suppliers.
Kiplagat added that Moi University still owes Ksh1.6 billion under a return-to-work agreement made with staff.
Melly questioned the officials' decision to lay off so many employees and asked whether appropriate legal procedures were followed.
“The Committee is deeply concerned about the livelihoods of the affected staff. We want assurance that the university is not using redundancy to avoid paying its debts,” Melly said.
The review indicated that the university was spending more than it could afford, primarily due to decreased student admissions and a rising wage bill.
Moi University is among several public universities that reeling from debt that has crippled the higher learning and led to Senate declaring the Technical University of Kenya insolvent in May.
