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Moi University has begun issuing redundancy letters to 892 staff members across departments, citing economic difficulties.
A letter signed by Prof. Loice Maru, the Acting Deputy Vice-Chancellor for Administration, Planning and Strategy, confirms that the institution has embarked on a "Right-Sizing Exercise" in accordance with Section 40 of the Employment Act, 2007 and the relevant Collective Bargaining Agreement (CBA).
Professor Kiplagat Kotut, the current acting Vice Chancellor, said that the university has been planning the layoff since 2021.
“It's not something that was decided the other day. It's been a discussion that has been going on from around 2021. We are laying off a total of 892 staff members, and these are members of staff distributed across the various departments and sections of the university,” he said.
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Professor Kiplagat Kotut, the current acting Vice Chancellor
The termination notice, dated and circulated internally, states that employees are being laid off due to financial constraints that have impacted the university’s sustainability.
Staff members affected by the exercise have been given 30 days' notice from the date of the letter, with assurances that the decision is not performance-related but an “organisational response to financial constraints beyond our control.”
“This letter serves as formal notice that your employment with the University will be terminated on the grounds of redundancy,” reads part of the statement.
The letter also outlines entitlements due to affected staff, including:
Notice pay or payment in lieu of notice
Severance pay
Accrued leave days
Any other dues stipulated in the terms of employment
The university has promised to process final payments promptly and urged affected staff to return any institutional property to facilitate a smooth clearance process.
Dwindling student admission has also contributed to a huge drop in revenue for the university, making it hard to meet its obligations.
Challenges plaguing universities in Kenya
Kenyan universities, both public and private, have been grappling with significant financial challenges that threaten their sustainability and the quality of higher education.
These constraints stem from a combination of systemic issues, policy missteps, and economic pressures.
Overreliance on Government Funding and Tuition Fees
Public universities in Kenya have traditionally depended heavily on government capitation and student tuition fees. However, this model has proven unsustainable.
Budget allocations have not kept pace with the growing student population and rising operational costs.
2. Delayed Disbursements and Accumulating Debts
Delayed government disbursements have led to cash flow problems, making it difficult for universities to meet financial obligations such as paying staff salaries and remitting statutory deductions.
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Many universities have accumulated significant debts due to creditors and are even unable to remit statutory deductions, courtesy of competing institutional interests
3. Ineffective Funding Models
The Differentiated Unit Cost (DUC) funding model was introduced in 2016/2017 to allocate resources based on the cost of academic programs.
However, these models have faced criticism for failing to address the core funding challenges. Issues such as unclear guidelines on registration fees, accommodation, catering, and access to essential services have persisted.
4. Limited Income-Generating Activities
Many universities have not diversified their income streams, relying instead on traditional funding sources.
Studies have shown that problems with internally generated funds greatly influence the growth of universities.
For example, Pwani University has limited income-generating activities to supplement the limited funding from the government.
5. Impact on Quality of Education
Financial constraints have adversely affected the quality of education.
Universities struggle to implement market-oriented courses, limit student enrollments due to inadequate infrastructure, and face challenges in recruiting academic staff.
These issues compromise the institutions' ability to fulfil their mandate of teaching, learning, research, and innovation.