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Once a thriving higher institution of learning, Moi University is on the verge of collapse over what had been described as poor management and inadequate finances.

Inadequate funding, according to the university’s management, has hampered operations as it has not been able to raise revenues to meet expenditure.

According to the university, the recent closure, the subsequent reopening and uncertainty caused by staff industrial action are the culmination of long standing challenges facing the university.

“The inability to raise adequate revenue is driven by two factors. First, there has been a reduction in government grants through capitation. The university also relied on the Privately Sponsored Students but the 2016 KCSE reforms eliminated the revenue stream as all students who qualify for university entry received government sponsorship,” the University Council said in a statement to newsrooms recently.

The university added that it has witnessed significant drop in student enrolment in its undergraduate programmes, which form the bulk of its revenue base.

According to the Council, for the 2024/2025 Academic Year, about 6,000 first year students were placed in the institution against a declared capacity of over 14,000 students and over 47,000 applications to the university under graduate programme.

“The University thus has excess capacity to run undergraduate programmes, and on realising this mismatch, the Council engaged the relevant government entities on modalities of utilising this excess capacity,” reads the statement signed by Moi University Council Chairperson Dr Humphrey Kimani Njuguna.

He said the university has contributed immensely to high skilled human resources needed for national development in Kenya. According to the Council, since its inception, the university has graduated over 140,000 highly skilled individuals who are now discharging various responsibilities in national building.

“The government’s support has been integral in enabling the university to spread it’s wings locally, regionally and internationally through financial support and offering the necessary guidance and direction. However, this contribution has come with challenges,” said the Council.

The university added that the court directive to implement 2017/2021 payroll on a diagonal basis has instantly created salary arrears to that accumulated to about Sh1.2 billion that remain unresolved.

“The University has engaged the government through the Ministry of Education for additional resources to meet the payroll gaps,” said the institution.

According to the Council, a financial support of Sh3.5 billion is required for the university to meet the gap and other pressing challenges.

“A sustainability plan containing the additional measures has been presented and discussed with the government for concurrence to enable implementation,” said Dr Njuguna.

The university is under the radar of Ethics and Anti-Corruption Commission (EACC) over financial impropriety running into billions of shillings at the institution.  EACC has already grilled many senior officials in the university including the Vice-Chancellor Prof Isaac Kosgey over the loss of billions of shillings through dubious deals. The Commission is narrowing down to a private consultancy firm in the ongoing probe into Sh2.2 billion corruption scandal at the institution.

Detectives privy to the investigation believe that Habitech Consultants was used by top university officials to siphon funds. In a statement to newsrooms, EACC confirmed that it is seized of the matter and investigations are ongoing.

“The Commission commenced investigations in June 2024 upon receipt of a report that senior management officials in Moi University had in collusion with private consultants hatched a scheme for illicit enrichment through fraudulent and irregular multi-million tender awards for major development projects,” the EACC report read in part.

According to the commission, it was further alleged that in the implementation of its development projects, Moi University management deliberately avoided the free services of existing Government Professionals from the Ministry of Public works in its tendering processes.

“Notably, Habitech Consultants, which have been engaged by the university over the last seven years, are reported to have been aiding top university officials to execute corruption scams embedded in infrastructural projects,” EACC said in their statement.  The financially strained university has since opted to layoff some of its staff as part of addressing the ballooning wage bill that had strained the institution’s operations.

The institution has been facing difficulties in meeting its wage bill obligations. The Kesses based institution of higher learning has attributed its financial woes to the closure of satellite campuses and the scrapping of certain courses three years ago.