Moi University will be sacking an unknown number of employees to cut costs. The university says 70 percent of the cash it gets from the government goes into paying salaries while the revenues it makes from fees have been dwindling over the years.
The University has written to the university’s Academic Staff Union (UASU) about the impending layoff of staff, noting that the wage bill is currently eating up over 70 percent of its government capitation and says the move is to save money.
“The University intends to engage the services of a consultancy firm to undertake Human Resource right-sizing exercise with the aim of improving efficiency in service delivery,” said Moi University in the notice calling for interested HR firms.
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Cash-flow challenges at Moi University have resulted in a build-up of pending bills, a freeze on hiring, and stalled infrastructure projects. At some point, the university had issued a distress call saying it was unable to remain afloat due to debts.
Auditor General Nancy Gathungu noted that the university had accumulated 1.1 billion shillings in spending bills for the year ending June 2020. The university is likely to face legal actions for not settling pending bills since they had been outstanding for over 90 days.
In August last year, Moi University hinted at closing more satellite campuses in a move to reduce costs and improve education standards.
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In February this year, the ailing Moi University opted to sell cows and bulls through a public auction in order to survive. The once vibrant institution of higher learning is now a shell of its former self rocked by financial turmoil, corruption, and tribalism.