Moi University: A Tale of Financial Woes

The Chairman of Moi University council Dr. Humphrey Kimani on Tuesday 26 November released a statement detailing financial difficulties facing the institution in the face of reduction of government funding.

The statement signed on behalf of the council highlighted a significant decline in student enrollment in undergraduate programs, which constitute a substantial portion of the university’s revenue base.

“Since the introduction of the differentiated unit cost model of university funding, the government has progressively reduced the capitation grants from an anticipated 80% of the cost of an academic program to about 38% at the time of its replacement.

“For example, the 2023/24 monthly capitation was Ksh202 million and formed the bulk of funds that are used to meet the monthly payroll costs of Ksh370 million, as the university implemented the 2017/2021 CBA on a horizontal basis upon advice from the Salaries and Remuneration Commission. However, for the 2024/2025 financial year that started in July 2024, the monthly capitation was reduced to Ksh89 million. This left a monthly payroll gap of Ksh314 million, which has been difficult to fill,” the council’s chairman, Dr. Humphrey Kimani, stated.

However, Kimani affirmed that the institution has engaged the government for additional resources to address the payroll gap and has received assurance that an initial funding of Ksh3.5 billion will be provided to bridge the deficit.

“The payroll gap arising from a mismatch in revenues and expenditure created delays in salary payment and remittance of statutory and third-party deductions. Contrary to the commonly held assertion that the university deducted and failed to remit the funds, the reality is that the revenues were such that they were only sufficient to meet the net payroll costs,” Kimani remarked.

Moi University Vice Chancellor Prof. Isaac Kosgei. His appointment was said to be politically instigated.

He intimated that with the help of the government, the university has begun payment of gross payroll costs and remittance of statutory and third-party deductions.

“The university has engaged and continues to engage, with all the entities involved to find a mutually beneficial solution, as consultations for additional resources from the government to meet outstanding arrears continue. The university declared over Ksh7 billion of accumulated arrears from the year 2015 as pending bills to the Pending Bills Verification Committee of the National Treasury as directed by the government for possible final settlement,” Kimani added.

Addressing the allegations of Ksh2.2 billion embezzlement, the council chairman claimed that the reports were inaccurate and misleading.

Kimani noted that the quoted amount was the total cost of projects under scrutiny some of which he said have not commenced.

“The reports suggesting that over Ksh2.2 billion was squandered in capital development projects are inaccurate and misleading. The quoted amount is the total cost of the projects under scrutiny, some of which have not even kicked off, and some of which the requisite funding from the government has not been disbursed,” Kimani stated.

He emphasized that the council is dedicated to securing the university’s financial sustainability in the long term and is actively pursuing and implementing strategies to diversify its revenue streams.

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