Moi University Lays Off 800 Staff Amid Deepening Financial Woes

By Kelvin Kibet | May 15, 2025

Moi University has commenced a fresh wave of layoffs, terminating the contracts of approximately 800 staff members as part of a broader restructuring initiative aimed at managing its severe financial crisis.

In a memo circulated on Wednesday, May 14, the institution’s management notified employees of the conclusion of its staff rationalization exercise and instructed them to collect either retention or redundancy letters between May 14 and May 23, 2025.

“The staff-right-sizing exercise at Moi University has now concluded after extensive consultations with various stakeholders,” the memo stated.

The university said the redundancy process was informed by a comprehensive assessment of its operational needs and financial sustainability. A significant drop in student enrollment and ongoing budgetary constraints were cited as key factors contributing to the move.

Notice Period and Exit Packages

Affected employees will officially exit the institution after a mandatory 30-day notice. By Section 40 of the Employment Act, 2007 and existing Collective Bargaining Agreements, staff will be entitled to:

• Notice pay or payment instead of notice

• Severance pay (where applicable)

• Payment for accrued leave days

• Any other benefits outlined in their employment contracts

University officials have emphasized that the layoffs are not performance-related but strictly a response to financial pressures.

“This decision is not a reflection of your performance but a strategic measure in response to fiscal realities,” noted Deputy Vice-Chancellor Loice Maru in a formal communication.

Commitment to Legal and Ethical Process

Vice Chancellor Prof. Kiplagat Kotut assured stakeholders that the process is being conducted in compliance with labor laws and in consultation with union representatives.

“Our objective is to explore all possible alternatives to limit the impact, including redeployment or assignment to alternative roles where possible,” said Kotut.

“We are committed to full compliance with the Employment Act and the UASU CBA 2012/2013.”

A Troubled Institution

The layoffs come just two months after the government injected Ksh1.8 billion into the university in a bailout effort. Despite this, Moi University continues to grapple with over Ksh12 billion in debts, including salary arrears and unremitted pension contributions.

This latest development underscores the growing financial strain faced by public universities across Kenya. Reduced government funding, ballooning wage bills, and declining student numbers have left many institutions teetering on the brink.