Moi University, a leading public institution in Kenya, has announced the termination of approximately 800 employees as part of a drastic cost-cutting measure to address its deepening financial crisis.
The layoffs, described as a “staff right-sizing exercise,” were confirmed in a memo dated May 13, 2025, signed by Acting Vice-Chancellor Prof. Kiplagat Kotut, following extensive consultations with stakeholders.
The affected staff, including members of the Universities Academic Staff Union (UASU), Kenya Universities Staff Union (KUSU), and Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA), were instructed to collect their redundancy or retention letters between May 14 and May 23, 2025.
The university cited a significant decline in student enrollment—from 50,000 in 2015 to about 4,800 in 2024 against a capacity of 15,000—as a primary reason for reduced revenue. This, coupled with a ballooning wage bill and debts exceeding Ksh 10 billion, including salary arrears and unremitted pensions, has crippled operations.
Affected employees will receive severance pay, salary in lieu of notice, payment for accrued leave days, and other benefits per the Employment Act and union agreements.
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Prof. Kotut emphasized compliance with legal requirements and explored redeployment options to minimize the impact. However, UASU has challenged the layoffs, filing a case in the Employment and Labour Relations Court, alleging procedural violations and bad faith by the university management.
The layoffs follow a Ksh 1.8 billion government bailout in April 2025, which failed to stabilize the institution. Earlier, 324 contract workers were let go in March 2025 due to reduced workloads. Local communities, reliant on the University Jobs and economic activity, have expressed concerns over the broader economic fallout.
The Universities Academic Staff Union has moved to court to block the layoffs, terming them illegal. Moi University’s financial woes, compounded by allegations of mismanagement and reduced government funding, continue to threaten its legacy as a premier academic institution.
By David kipkorir
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