Moi University Acting Vice Chancellor Laban Ayiro has said the institution is in a financial crisis.
Prof Ayiro said the situation is dire and urgent action must be taken to salvage the institution.
Ayiro, who assumed office two months ago, said the institution was unable to operate as expected as the management cannot make prudent financial and operational decisions.
The VC cited inadequate and poorly maintained lecture halls and accommodation facilities, lack of voice projection equipment, inadequate teaching aids, laboratories, workshops and medical facilities.
"We have a paltry Sh143 million in our account, making the institution unable to realise any tangible infrastructure development. The quality of teaching, research and extension has lapsed to levels not expected of a national university of our standing," he noted.
He added: "The declining enrolment amidst increasing competition is symptomatic of the decaying infrastructure and quality standards."
Prof Ayiro said health facilities are even turning away university staff seeking medical services.
"As a Chief Executive, I would never have imagined seeing hospitals reject Moi University patients; newspapers cannot pick our advertisements, suppliers only supply when our cheques have gone through and statutory deductions are in arrears, among others," he said.
Speaking at the institution yesterday during a Vice Chancellor's Oration Themed 'Re-branding Moi University: Choices and Responsibilities', Prof Ayiro said tough and painful choices have to be made to restore the facility.
"Today we pose, wonder and marvel at his ingenuity in wanting an institution of higher learning situated is such humble settings,'' he said.
He said the institution relies on the exchequer, partnerships and internally-generated sources.
"With these, we feel a sense of urgency to revamp the institution in order for it to make its contribution to the nation and the wider society. We want to be true to ourselves and be clearer on our choices and responsibilities," said Ayiro.
He praised retired President Moi for the vision he had in creating the institution as the second public university 30 years ago.
Commission for University Education chairman Chacha Nyaigotti Chacha and Chancellor Miriam Were were among the dignitaries who attended the event.