Moi University plans redundancy amid financial crisis, declining student numbers

Moi University main Campus at Ngeria, Uasin Gishu County. [File, Standard] Financially troubled Moi University has issued a notice of intention to declare redundancy for its teaching staff, weeks after dismissing more than 300 employees due to financial constraints. A notice issued by the university's newly appointed Vice Chancellor, Prof. Kiplagat Kotut, stated that the redundancy would affect a number of academic staff members who are members of the University Academic Staff Union (UASU). Prof. Kotut explained that the decision was driven by a reduction in revenue due to declining student numbers and the need to align human resources with the existing workload. He added that further details regarding the employees who would be affected and the proposed timeline for the redundancy process would be communicated later. The Vice Chancellor revealed that the dwindling student numbers had created a difficult operating environment, making it challenging for the university to meet its financial obligations, including the payment of employee emoluments. "In accordance with Section 40 of the Employment Act 2007, Laws of Kenya, and the provisions of the Collective Bargaining Agreement (CBA) between Moi University and the UASU, we hereby give formal notice of our intention to declare redundancy affecting a number of employees who are members of your union. As a result, we are compelled to review our operations and adjust the workforce accordingly to ensure the sustainability of the university," part of the notice read. The Vice Chancellor further stated that during the notice period, the university's management would engage in consultations with the affected employees and their union representatives, in accordance with the law and the UASU CBA. "Our objective is to explore all possible alternatives to limit the impact of the redundancy, including potential redeployment or alternative roles where possible," Prof. Kotut added. The notice indicated that affected employees would be entitled to severance pay, salary in lieu of notice, payment for accrued leave days, and any other unpaid benefits due to them. The redundancy notice comes just three weeks after the university dismissed 324 non-teaching staff workers who had been employed on a contract basis. The move, according to the university's Acting Deputy Vice Chancellor for Administration, Planning, and Strategy, Prof. Khaemba Ongeti, was due to a reduced workload caused by a significant decline in student enrolment. "You are aware that your three-month contract expires on March 31, 2025. You are also aware that student numbers have drastically reduced, resulting in a substantial reduction in workload that had previously necessitated the procurement of extra workforce on contract terms. Consequently, the university is not in a position to continue procuring workforce on contract terms," read the termination notice dated March 13, issued by Prof. Ongeti. The workers affected included casuals in the cleaning, security, hostel, and library departments, and the university promised to clear their pending six months' salaries, 15 days' salary in lieu of notice, 15 days' salary for each year worked, and other benefits due to them. In January this year, Education Cabinet Secretary Julius Ogamba inaugurated the new Prof. Noah Midamba-led Moi University Council and tasked the five-member team with reviving the institution. The CS promised changes at the country's second-largest university, stating that the new council was expected to restore order and normal operations following months of instability caused by governance and leadership issues that threatened to plunge the university into despondency. He expressed immense trust in the leadership and expertise of the new council members, though he warned them that their work ahead would not be without challenges. In February, the council placed Vice Chancellor Prof. Isaac Sanga Kosgey, other deputy vice chancellors, and top university officials on leave, as new management led by Prof. Kotut took over. The leadership changes came amid a deepening financial crisis at the university, where former VC Prof. Kosgey and three senior officials are under investigation by the Ethics and Anti-Corruption Commission (EACC) over graft allegations involving fraudulent infrastructural projects worth over Sh2 billion. The cash-strapped university has accumulated debts exceeding Sh8 billion, threatening academic activities, with both lecturers and non-teaching staff frequently engaging in strikes. Following the inauguration of the new council, staff confirmed that Moi University had paid out Sh500 million in delayed salaries, including Sh400 million for December salaries and another Sh103 million for arrears that had not been cleared since October last year, bringing an end to their strike. On November 30, 2024, CS Ogamba signed an agreement with the staff in which the government would release Sh8.6 billion for salaries to be paid in phases between the 2024/25 and 2027/28 financial years. The university was also allowed to sell assets to pay off its debts, while Sh500 million was allocated for staff financial needs, including the payment of bank loans, union dues, pensions, and welfare services. Midamba pledged that the new council would begin working immediately to transform the university and restore its reputation as a centre of academic excellence and innovation.

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