Moi University sacks 900 staff citing financial constraints

Moi University in Eldoret has declared at least 900 employees redundant as it undergoes restructuring due to financial constraints and an overstretched workforce.

The university, once a leading academic institution in the country, has informed the affected employees that the letters they received serve as notice of termination of employment.

“Following a review of the university's operational needs and financial sustainability, your position has been identified as one that is affected by the redundancy process,” the letter states in part.

The notifications were sent to employees by Acting Deputy Vice Chancellor Loyce Maru. On Tuesday, Acting Vice Chancellor Prof Kiplagat Kotut issued an internal memo to the staff announcing the conclusion of the redundancy process and instructed them to collect their dismissal letters.

“The staff right-sizing exercise at Moi University is now complete after extensive consultations with various stakeholders,” stated the Acting Vice Chancellor.

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Prof Kotut instructed employees to collect their retention or redundancy notification letters between Wednesday, May 14, and Friday, May 23.

Moi University, once a leading academic institution in Kenya, has faced significant financial challenges in recent years, including reports of delayed salaries and mounting debts. The recent layoffs are expected to affect both academic and non-teaching staff, though specific numbers have not yet been disclosed.

Among those affected are 389 members of the Kenya University Staff Union (KUSU), 384 members of the Kenya Union of Domestic, Hotels, Education Institutions, Hospitals, and Allied Workers (KUDHEIHA), and 127 lecturers who are members of the University Academic Staff Union (UASU).

UASU branch officials, led by chapter Organising Secretary Nyabuta Ojuki, confirmed the university's actions, which he opposed, labelling them illegal and unprocedural. The union has filed a lawsuit to restrain the university from proceeding with the layoffs.

KUDHEIHA and KUSU have also indicated that they will take their grievances to the Employment and Labour Relations Court.

Last month, the university had announced its intention to declare redundancy for both teaching and non-teaching staff, a move that followed the termination of more than 300 employees on contract due to financial issues.

Prof Kotut indicated that the decision was due to a reduction in revenue stemming from a decline in student enrolment and a need to align the workforce with the current workload.

The Vice Chancellor noted that dwindling student numbers have resulted in a challenging operating environment, making it difficult for the university to meet its financial obligations, including employee salaries.

"In accordance with Section 40 of the Employment Act 2007 and the provisions of the Collective Bargaining Agreement (CBA) between Moi University and UASU, we hereby give formal notice of the intention to declare redundancy affecting several employees who are members of your union,” the notice stated.

"As a result, we are compelled to review our operations and adjust the workforce accordingly to ensure the university's sustainability," the notice continued.

The Vice Chancellor added that during the notice period, the university's management would engage in consultations with the affected employees and their union representatives, in accordance with the law and the UASU CBA.

Employees affected by the redundancy will be entitled to severance pay, salary instead of notice, payment for accrued leave days, and any other unpaid benefits.

Earlier this year, the university dismissed 324 employees on contract due to a significant decline in student enrollment, which led to a reduced workload.

“Your three-month contract expires on March 31, 2025. The student numbers have drastically reduced, resulting in a substantial decrease in workload, which had previously necessitated the procurement of additional contracted staff,” stated the terminal notice dated March 13 issued by Prof Khaemba Ongeti, Acting Deputy Vice Chancellor of Administration, Planning, and Strategy.

The affected workers included casual employees in the cleaning, security, hostel, and library departments.

The university promised to settle their pending six months’ salaries, provide 15 days’ salary instead of notice, and give 15 days’ salary for each year worked, among other benefits.

In January of this year, Education Cabinet Secretary Julius Ogamba inaugurated a new five-member council led by Prof Noah Midamba to revive Moi University.

The Cabinet Secretary expressed confidence in the new council’s ability to restore order and normal operations at the university after a period of instability caused by governance and leadership issues.

The government has expressed strong confidence in the leadership and expertise of the new council members; however, they have been warned that the challenges ahead will be significant.

In February, the Council placed Vice Chancellor Prof Isaac Sanga Kosgey, along with other Deputy Vice-Chancellors and senior university officials, on leave as new management under Prof Kotut took over.

These leadership changes occurred during a worsening financial crisis at the university. Prof Kosgey and three senior officials are currently under investigation by the Ethics and Anti-Corruption Commission (EACC) for alleged corruption involving fraudulent infrastructure projects valued at over Sh2 billion.

The financially troubled university is facing debts exceeding Sh8 billion, which have disrupted learning activities, causing frequent strikes among lecturers and non-teaching staff.