By Roy Hezron
The United States International University (USIU-Africa) is planning to lay off 70 workers as the institution grapples with tough economic conditions caused by the Covid-19 pandemic and declining enrolment.
In a memo dated January 25 to staff and secretary generals of the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied (KUDHEIHA) Workers Union and the Kenya Private Universities Workers Union (KPUWU), the university says the details will be communicated directly to those affected.
“It is anticipated that this may result, but not limited to, outsourcing of some of the support services, total abolishment or reduction in number of some roles, which may result to about 70 positions being declared redundant in a phased process,” reads the memo signed by the university’s Vice-Chancellor Prof. Paul T. Zeleza and copied to PS Ministry of Labour and Executive Director of Federation of Kenya Employers (FKE).
The memo adds that decision is informed by the economic strain the university is experiencing due to Covid-19 pandemic.
“Since the advent of the Covid-19 pandemic, the university had to take several measures to contain costs and ensure financial sustainability, key of which included renegotiation of service contracts, complete freeze on projects, and sending non-essential employees on paid leave as well termination of all short-term employment contracts,” stated Prof. Zeleza in the memo.
Prof Zeleza also cites decrease in number of students for the decision.
“The Student full time equivalent (FTE) numbers has been dwindling in the last three years and Covid-19 pandemic significantly affected the university’s gradual recovery plans from a difficult period. Its impact on the university budget September 2020/August 2021 was estimated to be an annual deficit of approximately Sh313 million,” the VC writes in the memo.
Even before Covid-19 struck, private universities had found themselves in a difficult financial situation due to fewer students qualifying for university admission since the government cracked down on cheating in the Kenya Certificate of Secondary Education (KCSE) examination.
“The steady decline in the University student enrollment has been a focus of discussion/debate for quite some time amongst internal stakeholders due to the effects of changes in national examination pass rates which is known to have had an adverse effect on university enrolment since 2016/17,” said the VC.
