logo
ADVERTISEMENT
News03 July 2026 - 12:46

Cash-strapped Moi University seeks fresh Sh1.9bn bailout

University tells MPs it needs Sh1.9bn for recurrent spending and Sh21bn for full financial recovery

image
by EMMANUEL WANJALA
Vocalize Pre-Player Loader

Audio By Vocalize

Moi University acting Vice Chancellor Prof Kiplagat Kotut appearing before the National Assembly's Education Committee for deliberations on funding and governance at Bunge Towers on July 2, 2026. /DOUGLAS OKIDDY

Moi University has appealed for an additional Sh1.9 billion from the government to sustain its operations this financial year, warning that its pending bills have risen to Sh9 billion as it struggles to recover from more than a decade of chronic funding shortfalls.

The appeal was made on Thursday when the university's leadership appeared before the National Assembly Committee on Education to update members on its financial position and reforms undertaken since a new management team assumed office early last year.

Acting Vice Chancellor Kiplagat Kotut told the committee, chaired by Tinderet MP Julius Melly, that the university's financial challenges date back to 2014 and continue to undermine its operations.

"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 said.

He added that the university would require about Sh21 billion to fully restore its financial stability.

The institution has continued to grapple with a prolonged financial crisis that has prompted repeated government interventions, including multi-billion-shilling bailouts to clear salary arrears and ease mounting debt.

According to the Auditor General's report for the financial year ended June 30, 2025, employee costs consumed about 85 per cent of the university's total revenue, leaving little money for development, debt repayment or essential operations.

The report showed the university spent Sh5.12 billion on employee obligations against total revenue of Sh5.99 billion, far exceeding the legal threshold that caps personnel expenditure at 35 per cent of revenue.

Part-time lecturers were also owed Sh221.5 million, while nearly all internally generated income went towards salaries.

National Assembly Committee on Education chairperson Julius Melly during a meeting with Moi University management at Bunge Towers on July 2, 2026. /DOUGLAS OKIDDY

The committee session had been convened to assess progress on earlier recommendations touching on financial accountability, procurement reforms, governance and institutional controls following audit queries over alleged misuse of public funds.

"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, which resulted in substantial financial losses," Melly said.

He asked the new management to explain the measures it had taken to restore public confidence and implement the reforms expected after assuming office.

University officials said efforts to stabilise academic programmes and improve service delivery had begun yielding results, particularly through increased student enrolment.

Deputy Vice Chancellor for Academics, Research, Extension and Student Affairs Khaemba Ongeti told MPs that student numbers had steadily increased under the new administration.

"In 2024, the number of students was 5,000. This moved up to 6,800 last year, and this year we are seeing the number move to 10,000. What we have done is move students' progress through the academic calendar and ensure they graduate on time," Ongeti said.

"We are also sorting out the issue of missing marks," he added.

Kotut assumed office in an acting capacity on January 31, 2025, replacing Isaac Kosgey, who was sent on compulsory leave.

The appointment followed the government's decision earlier that month to dissolve the university's previous leadership and appoint a new council in an effort to revive operations and restore confidence in the institution.

At the close of the session, Melly directed the acting vice chancellor, the university council and management to submit a comprehensive report addressing issues the committee found had not been satisfactorily explained.

ADVERTISEMENT

logo© The Star 2026. All rights reserved