Moi university rot runs deep, staff ask Ruto to intervene

New details now reveal the dire financial state of Moi University, with data showing the institution is drowning in debt, owing over Sh8.6 billion to its staff and third parties over the past seven years.

This financial strain has plunged the institution into a crisis, resulting in an 86-day staff strike and leaving students stranded.

The data, contained in a letter to the President, highlights that the university has failed to pay Sh4.2 billion in pensions, Sh1.2 billion in loans, Sh1.6 billion in postgraduate salary arrears, and additional dues for welfare, gratuities, and union fees.

In the letter, staff have appealed to the government to provide Sh2.8 billion to address their immediate needs and enable the resumption of operations.

.

Keep Reading business

•  Debate on diaspora bond sparks mixed reactions among Kenyans
•  End of an era as Mastermind Tobacco to go under the hammer
•  Irony of lowest inflation in 17 years but Kenyans barely making ends meet
•  2024: Year of layoffs as businesses struggle to stay afloat
•  Honda and Nissan expected to begin merger talks

The financial distress has triggered an 86-day strike, paralysing operations at the institution. This coincides with an investigation by the Ethics and Anti-Corruption Commission (EACC) into university spending on development projects.

The university’s Vice-Chancellor Isaac Kosgei, appeared at the EACC offices in Eldoret on Wednesday for an interview and to record a statement regarding the institution’s management.

However, this turmoil is not new but part of a long history of mismanagement and systemic challenges that have plagued the university since its founding in 1984.

Prof Kosgei assumed office in 2018 following a highly contentious selection process. His appointment was met with resistance from sections of the university community, who accused the institution’s council of bias in his favour over other candidates.

At the time, the council was criticised for sidelining the acting Vice-Chancellor, Prof Laban Ayiro, a well-qualified candidate widely supported by both staff and students.

The decision led to public protests and allegations of tribalism influencing the selection process, a controversy that deeply divided the university. Since his appointment, Prof Kosgei has faced numerous challenges, including mounting debts, strained labour relations, and declining student enrolment.

Critics argue that the leadership struggles and financial mismanagement are interconnected, with each crisis exacerbating the other.

For instance, delayed salaries have become routine, with staff reporting that September wages were only paid on November 4, while October salaries remain unpaid.

“We don’t remember when we last received salary before the 15th day of the month,” the letter reads.

However, Moi University’s financial troubles are not isolated but part of a broader crisis facing Kenya’s public universities.

Chronic underfunding, coupled with governance challenges, has left many institutions unable to meet their obligations.

For Moi University, the crisis dates back to 2017, when a staff strike over unpaid allowances and delayed Collective Bargaining Agreement (CBA) implementation paralysed operations.

Despite repeated government interventions, little has changed, and the institution’s financial health continues to deteriorate.

In their letter, the staff outline issues including late salary payments, a collapsed pension scheme for retired staff, delays in completing semester dates, and the halting of medical benefits.

This persistent lateness has caused severe financial hardships, leaving many staff unable to meet daily needs despite deductions from their salaries.

According to the letter, this has resulted in lawsuits and threats of property auctioning by financial institutions.

“Staff with loan issues have been summoned to court and are fighting to prevent their properties from being seized by auctioneers,” the letter reads.

The crisis has also affected students, who remain in limbo with indefinitely delayed lectures and no orientation conducted for first-years since their admission in September.

The letter notes that staff morale is at an all-time low, with many struggling with mounting debts, repossessed assets, and the loss of basic benefits such as medical insurance, while retirees are unable to access their pensions, adding to the institution’s woes.

Students now face extended semesters and increased living expenses, further exacerbating their financial strain.

In their letter, the staff proposed a bailout plan, urging the government to release Sh2.88 billion immediately to offset gratuities, loans, and welfare contributions. They also called for a clear payment schedule to address the pension debt.

“The staff will accept the Sh2.88 billion if a convincing plan is put in place on how to offset the pension debt,” the letter stated.

The staff expressed their willingness to resume work but emphasised the need for urgent government intervention to stabilise the institution.