Moi University set to reopen after Treasury injects Ksh1 billion
Moi University will reopen next week after the National Treasury released Sh 2.9 billion to address the institution’s financial and operational needs.
The funds will enable the university to address its immediate financial obligations, including paying Sh807 million in outstanding staff salaries for September and October.
The move came after the intervention of Parliament and the State Department for Higher Education and Research which demanded that action be taken to ensure that learners go back to school.
The university had formally requested monthly financial support of Sh315 million for two years and a one-time allocation of Sh2.4 billion to clear outstanding debts, including penalties and interest accrued on unpaid bills.
Additionally, Sh1.05 billion has been requested to cover salary arrears in line with the 2017-2021 Collective Bargaining Agreement (CBA), which was court-mandated in 2021.
In a communication to the house, National Assembly Speaker Moses Wetang’ula termed the closure of the university, “a matter of grave national concern,” underscoring the university’s important role in Kenya’s higher education landscape and its impact on international students.
Wetang’ula said urgent intervention is needed to stabilize the university in order to stop further disruptions to academic programs, and restore confidence in its operations.
He said “The presence of international students extends these issues beyond our borders. I will instruct the Chairman of the Departmental Committee on Education to provide a statement from the Ministry of Education on the status of Moi University and any relevant measures for accelerating a resolution and reopening.”
Wetangula further urged Education Cabinet Secretary Migos Ogamba to appear before Parliament in the coming week to address the issue and provide a detailed plan for the university’s recovery.
National Assembly’s Education Committee chairman and Tinderet MP Julius Melly, told MPs in early October, the National Treasury allocated Sh 609 million to the university to support scholarships, tuition, and ongoing student needs.
He said: “Sh300 million will go toward scholarships this October, in addition to Sh217 million disbursed in August. Another Sh219.9 million will cover tuition, adding to the Sh127.2 million allocated in August. Finally, Sh89 million will be allocated as capitation for current students, complementing the Sh269 million disbursed in August.”
He added: “The university is required to project expected revenue from these income-generating activities over the next three years, from 2024 to 2027, and to supplement Exchequer resources with increased internal revenue,” he explained
While disclosing that by November 15, the Treasury will release an additional Sh 500 million to support the university’s financial stabilization and recovery, he revealed that a caretaker committee will be established to strengthen the institution’s management during this period.
He however raises concerns that there is a potential risk to future disbursements for loans and scholarships to institutions due to a recent court order.
The High Court issued an order on October 3, under Petition No. 412 of 2023 (Kenya Human Rights Commission and others vs. the Attorney-General), which has temporarily restricted the government’s new funding model for scholarships and loans.
He said: “This pertains to the Ministry’s new funding model for scholarships and loans, which is currently under legal review. To address this, the Ministry, through the Attorney-General’s Office, has filed an application to lift the court order, allowing funds to be disbursed to students and universities.”
The university was indefinitely closed on October 3, due to a prolonged strike by lecturers and staff over unpaid salaries and unresolved commitments from the 2017-2022 Collective Bargaining Agreement (CBA).
The protests, which spanned several weeks, centered on delayed payments, unremitted pensions, and outstanding loan deductions
Meanwhile, a task force has been assembled to develop a sustainable recovery plan for Moi University. The Committee, consisting of representatives from the Executive Office of the President, the National Treasury, and the Ministry of Education, is expected to collaborate closely with the University Council and management to address the university’s financial challenges and long-term viability.