Moi University is planning to lay off some of its staff, Vice-Chancellor Prof Isaac Kosgey says.
According to Prof. Kosgey, the action is a part of the University’s efforts to restore its long-term financial situation.
The institution’s boss noted in an internal memo issued on Monday, July 4, that it was difficult to run the institution since recurrent expenses like the wage bill consumed around 70% of the cash.
“With the continued decline of revenues, the University is unable to sustain the growing wage bill and, as such, it has become necessary to undertake right-sizing of the human resource sustainability of the University and its operations,” Kosgey told Moi University Academics Staff Union secretary.
“This is, therefore, to notify you of the impending redundancy of staff due to the continued strain by the University to fully fund its wage bill, and to align the human resource to the existing workload,”
Towards the end of last year, the Kesses-based institution of higher learning confirmed it was facing serious financial challenges.
The Auditor-General, Nancy Gathungu, said in a 2018-2019 report, that the university’s debts had exceeded Sh4.5 billion.
Dr. Humphrey Njuguna, chair of the Moi University Council, stated in September of last year that some of the university’s operations were paralyzed by debts totaling more than Sh5 billion.
The institution of higher learning blames the discontinuation of some courses and the closing of satellite campuses three years ago for its financial difficulties.
Days after the Ethics and Anti-Corruption Commission (EACC) stated it had opened an investigation into claims that the institution had been paying salaries to ghost employees, the allegations were confirmed.
So, beginning July 1, 2018, EACC requested payroll records from every employees.
The institution reportedly employs at least 10,000 people, with 1,000 of those listed as paid employees allegedly being ghost employees.
