State pledges Sh2.9b to Moi University ahead of reopening

Moi University is expected to reopen on November 4 after the National Treasury committed to release Sh2.9 billion towards the troubled institution’s financial and operational needs.

The university will reopen following Parliament and Higher Education State Department’s intervention. At the same time, National Assembly’s Committee on Education announced the completion of critical actions to allow the university to restore learning.

The committee’s chairman Julius Melly outlined key funding measures aimed at addressing the institution’s financial and operational challenges. 

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The money is expected to address the institution’s immediate financial obligations, including payment of Sh807 million in outstanding staff salaries for this and last month. 

To cover the difference of Sh198 million, Melly said the university will be expected to utilise its projected monthly revenue of Sh206 million while by November 15, the Treasury is to release an additional Sh500 million to support financial stabilization and recovery. 

A caretaker committee will also be established to strengthen the institution’s management during this period and will also develop a sustainable recovery plan for the university. 

The university has been faced with significant disruptions over financial and operational challenges for several years.

The committee, which comprises representatives drawn from the Executive, National Treasury and Ministry of Education, is expected to work closely with the University Council and management to address the university’s financial challenges and develop long-term viability.

“This committee has held initial meetings, resulting in immediate recommendations to ensure that critical university data is documented and that funding requests are analyzed thoroughly. An additional Sh315 million in monthly payroll support is required to maintain operations, and the university’s pending bills, as of July 1, 2022, stand at Sh2.4 billion. Negotiating a manageable payment plan with creditors is crucial,” Melly said last week.

The university was closed indefinitely on October 3, following a prolonged strike by lecturers and other staff over unpaid salaries and unresolved commitments from the 2017-2022 Collective Bargaining Agreement (CBA). 

The protests centered on delayed payments, unremitted pensions, and outstanding loan deductions. 

Last week, National Assembly Speaker Moses Wetang’ula described the closure of Moi University as a matter of grave national concern.

“I will instruct the Chairman of committee on Education to provide a statement from the Ministry of Education on the status of Moi University and any relevant measures for accelerating a resolution and reopening,” he said. 

He urged Education Cabinet Secretary Julius Ogamba to soon appear before Parliament in the coming week to address the issue and provide a detailed plan for the university’s recovery.

Wetang’ula emphasised the need for urgent intervention to stabilise the university and to not only restore academic programmes but also restore confidence in its operations.

The university had requested monthly financial support of Sh315 million for two years and a one-time allocation of Sh2.4 billion to clear outstanding debts, including penalties and interest accrued on unpaid bills. 

It also asked for Sh1.05 billion to cover salary arrears in line with the 2017-2021 Collective Bargaining Agreement (CBA).

Melly raised concerns over the disbursements for loans and scholarships owing to a court order, which has temporarily restricted the government’s new funding model.

“The Ministry, through the Attorney-General’s Office, has filed an application to lift the court order, allowing funds to be disbursed to students and universities,” said Melly.