Moi University is staring at a possible closure after the High Court froze its bank accounts in connection with a KSh1 billion debt owed to contractor Vishva Builders Limited. The dispute, filed as Eldoret High Court Civil Case No. 51 of 1999, stems from the construction of the Faculty of Science Complex and has now reached a critical stage that threatens the institution’s survival.
The crisis escalated on February 4, 2026, when a garnishee application led to the freezing of the university’s accounts. A garnishee order empowers a third party, such as a bank, to release funds held for a debtor to settle a court‑awarded claim. The move has effectively paralysed Moi University’s ability to meet financial obligations.
In an internal memo dated April 15, the university warned of dire consequences, noting: “The University is facing serious financial constraints coupled with the garnishee order that is in place.” The letter further cautioned that operations have been crippled and closure looms if the order is upheld.
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The freeze has already disrupted learning, leaving students unable to access essential services or sit examinations. Basic amenities such as water, electricity, sanitation, and accommodation have been affected. Staff salaries remain unpaid, heightening the risk of unrest, while lenders are threatening to recover outstanding loans tied to the blocked accounts.
To avert collapse, the university has sought a 60‑day postponement of a ruling scheduled for April 16, 2026. A proposed consent filed in court requests the deferral of the ruling, lifting of the garnishee order, and commencement of structured settlement talks.
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The plan includes an immediate payment of Sh50 million from the frozen accounts toward the debt. If approved, the matter will be mentioned again on June 16, 2026, for confirmation of settlement or further directions.
Despite previous government bailouts, this latest development has raised questions about the university’s financial management and accountability, given its recurring struggles.
By Masaki Enock
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