Cash-strapped Moi University seeks Sh11billion bailout
The troubled Moi University has appealed for more than Sh11 billion in additional government funding to rescue its operations, warning that years of chronic underfunding have pushed the institution into a deep financial crisis marked by Sh9 billion in pending bills and mounting staff obligations.
Appearing before the National Assembly Committee on Education on Thursday, July 2, 2026, Moi University acting Vice-Chancellor Kiplagat Kotut told lawmakers that the university requires Sh6.67 billion for recurrent expenditure and Sh5.3 billion for development projects during the 2026/27 financial year.
Of the recurrent allocation, the university is seeking Sh1.92 billion to meet payroll costs, Sh500 million to clear payroll-related statutory deductions, Sh1.25 billion to settle salary arrears arising from the 2017–2021 collective bargaining agreement (CBA), and Sh3 billion to remit outstanding staff loan deductions and pension contributions.
“We request that this committee consider adding Sh1.9 billion to support recurrent expenditure for FY2026/27. Secondly, the issue of pending bills remains a major concern for us, and it currently stands at Sh9 billion as a result of the university registering a deficit since 2014,” Kotut told the committee chaired by Tinderet MP Julius Melly.
Kotut said the university would require about Sh21 billion to fully restore its financial stability, adding that its financial woes date back more than a decade.
The committee session reviewed reforms undertaken since the current management assumed office in early 2025 following concerns raised by the Auditor-General over financial irregularities, procurement, governance and accountability.
“We previously engaged the university regarding financial management and accountability following audit reports that raised concerns about financial irregularities, including alleged misuse of funds in construction projects, unpaid bills and other questionable transactions,” Melly said.
According to the Auditor-General’s report for the year ended June 30, 2025, employee costs consumed Sh5.12 billion—about 85 per cent of the university’s Sh5.99 billion revenue—far above the legal threshold of 35 per cent. The report also showed part-time lecturers were owed Sh221.5 million.
University officials told MPs that reforms were beginning to bear fruit, with student enrolment rising from 5,000 in 2024 to 6,800 in 2025 and projected to reach 10,000 this year.
Deputy Vice-Chancellor for Academics, Research, Extension and Student Affairs Khaemba Ongeti said the university had prioritised restoring the academic calendar and clearing the backlog of missing examination marks to improve student progression and ensure timely graduation.
Kotut, who took over as acting vice-chancellor on January 31, 2025, also urged Parliament to increase funding for doctors’ and lecturers’ allowances and support implementation of commitments made under the 2024 Return-to-Work Formula as part of efforts to restore the university’s financial and academic stability.
