Moi University Council has come out to address financial challenges and strategic measures being implemented to ensure the long-term stability and sustainability of the institution.
The University has been grappling with long-standing financial issues that have significantly impacted its operations.
In the statement dated November 27, 2024, the Council, led by Chairman Dr Humphrey Kimani Njuguna, admitted that the challenges cannot be resolved overnight and require ongoing engagement with various stakeholders.
“The ongoing engagements with various stakeholders in the nation are designed to ensure the long-term stability and sustainability of the University. These engagements need time to bear any fruit,” Dr. Njuguna stated.
How Moi University has helped in national development
Moi University has played a crucial role in national development, graduating over 140,000 highly skilled individuals since its inception. The University’s acquisition of Rivatex EA Ltd in 2006 has revitalized the cotton industry in the Rift Valley and Western region, providing a vital market for local farmers.
However, the University’s financial challenges have been exacerbated by a reduction in government grants and a decline in student enrollment.
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According to the council, the introduction of the differentiated unit cost model of university funding has seen government capitation grants reduce from an anticipated 80% to about 38% of the cost of an academic program. This revenue gap, coupled with a decline in privately sponsored students due to the 2016 KCSE reforms, has put a strain on the University’s finances.
How many students were admitted to Moi University in 2024?
For the 2024/2025 academic year, only 6,000 first-year students were placed at Moi University, compared to a declared capacity of over 14,000 students.
The resulting mismatch in revenue and expenditure has created a dire financial situation. In the 2023/24 financial year, the University’s monthly capitation was Ksh 202 million, covering part of the monthly payroll costs of Ksh 370 million.
“The mismatch in revenue and expenditure created a difficult conundrum and compounded an increasingly dire financial situation,” Dr Njuguna noted. “For the 2024/2025 financial year, the monthly capitation was reduced to Ksh 89 million, leaving a monthly payroll gap of Ksh 314 million which has been difficult to fill.”
In addition, Moi University has accrued salary arrears of about Ksh 1.2 billion due to court directives and payroll adjustments. The Council noted that it has been engaging with the government for additional resources and has received assurances of an initial financial support of about Ksh 3.5 billion to address pressing challenges.
“Measures being considered include rationalizing the payroll and disposing of non-core assets,” it noted.
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The Council further clarified that the alleged misuse of Ksh 2.2 billion in capital development projects is inaccurate and misleading. It noted that some projects are donor-funded with strict auditing frameworks, and investigations by the Ethics and Anti-Corruption Commission are ongoing.
“The Council is committed to transparency and communication as we work to stabilize our operations and enhance our academic environment,” Dr. Njuguna reiterated. “We believe that, with the right strategies and support, we will emerge stronger and more resilient.”
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