Hon. Julius Melly has revealed the state of affairs at Moi University. Speaking during a session of the National Assembly on Friday, 18th October 2024, Hon. Melly, Chairperson, Education Committee, informed lawmakers of the university’s financial woes, citing mismanagement of funds, insolvency, and a crippling wage bill that has forced the institution to seek urgent financial aid from the government.

Lawmakers learnt that Moi University’s wage bill has ballooned to an unsustainable 88% of its total revenue. This is in contrast to the 35% standard in other institutions has worsened its financial predicament, leading to the institution's technical insolvency since 2016.

“The University’s liabilities now exceed its assets, with pending bills standing at Ksh 7.9 billion. This is a clear sign of the institution’s struggle to stay afloat,” Hon. Melly informed Parliament. 

The Tinderet legislator pointed out the University's operational challenges which began in 1991, exacerbated by the establishment of over nine other universities, which depleted its critical infrastructure, assets, and financial resources.

To avert a complete collapse, Moi University has requested Ksh 315 million in monthly support for the next two years, along with a one-time bailout of Ksh 2.4 billion to clear outstanding debt and salary arrears stemming from court rulings on Collective Bargaining Agreements (CBAs).

“The University also plans to raise Ksh 700 million by selling some of its properties as part of a broader strategy to right-size its staff,” added Hon. Melly.

"After consultations with the Office of the President, National Treasury, and Ministry of Education, concluded that the university's financial requests were not fully sustainable," remarked Hon. Melly.

The institution has been tasked to find alternative ways to increase revenue through income generating activities, such as leveraging its idle assets, conducting short-term training, and improving consultancy services.

"Moi university has been directed to protect its revenue over the next three years from these activities and negotiate a priority payment plan with creditors," stated Hon. Melly.

To stabilize the situation, the National Treasury has already disbursed Ksh 609 million to Moi University in October 2024, with an additional Ksh 500 million expected by November 15, 2024. A caretaker committee will also be formed to strengthen the management of the university during this recovery phase.The University is expected to reopen on November 4, 2024, dependent on the signing of a return-to-work formula by staff unions, a critical step towards restoring operations at the institution.

The statement is in response to a request sought by Chair, Public Investments Committee on Education and Governance, Hon. Jack Wamboka who raised concern about the urgency of the matter, calling for immediate intervention from the government.

"The deteriorating state of affairs at Moi University demands swift action to prevent further disruption of academic programs and restore confidence in the institution," Hon. Wamboka urged.

He added that the National Treasury should promptly release funds and settle salary arrears to ensure a smooth resumption of academic activities.