Staff at the Technical University of Kenya and Moi University are uneasy after the two troubled institutions announced plans to send home hundreds of employees to reduce their wage bills.
The two universities have recently faced closures after staff went on strike to protest the non-payment of salaries as well as the non-remittance of third-party deductions.
At Moi University, 324 workers employed on a contract basis have been issued letters stating the contracts will not be renewed due to reduced workload occasioned by a decline in student enrolment. This happened just three months after a new management team was appointed to salvage it.
TUK plans to reduce its workforce from 1,452 to 893, in three years to save Sh2.4 billion as it battles a financial crisis that has left the institution grappling with budget deficits, stalled projects, and mounting debts.
A report by the management of the university shows that between July 2024 and February 2025, staff numbers fell from 1,619 to 1,452 due to resignations, retirements, and non-renewal of contracts. However, payroll expenses have remained high, influenced by salary adjustments under the 2017 - 2021 and 2021 - 2025 collective bargaining agreements.
“You are aware, your three-month contract expires on March 31, 2025. You are also aware that the student numbers have drastically reduced resulting in a substantial reduction of workload that had earlier necessitated procuring extra workforce on contract terms.
Consequently, the university is not in a position to continue procuring workforce on contract terms,” reads the notice signed by Prof Khaemba Ongeti, acting deputy vice-chancellor (administration, planning and strategy). It is dated March 13, 2025.
“The university management board resolved that you be released upon expiry of your current contract and you are required to clear with all the relevant departments and sections in the university.”
The affected workers are mainly working in security, cleaning, hostels and library departments among other sections.
They will receive pending and unpaid six months’ salary from January to June 2023, 15 days’ salary in lieu of notice, 15 days’ salary for each year worked and salary for March 2025.
Student enrolment has declined from 50,000 in 2015 to 27,000 in 2021 while some non-viable campuses have been closed. The finances of the university have also been affected by reduced Exchequer funding of the differentiated unit cost and the rising cost of staff salaries to implement collective bargaining agreements.
The university is also mulling a reduction in staffing levels through compulsory redundancies.
The three workers’ unions – the Universities Academic Staff Union (Uasu), Kenya Universities Staff Union (KUSU) and Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) went on industrial strike last year to protest over non-implementation of the 2017-2021 CBA, non-remittances, among other grievances.
The Ministry of Education last year appointed a new management team to salvage the financially troubled university. Education Cabinet Secretary Julius Ogamba appointed Prof Noah Midamba the new chair of the council. Others are Prof Ronald Wasike, Dr Mercy Nyambura Kanyara, Dr Edwin Sambili and Anne Weceke Makori as members of the university council.
Meanwhile, the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) are investigating financial and managerial mismanagement at the institution.
Among financial irregularities under probe at the university include failure to remit Sh4 billion in payroll deductions, defaulted on a Sh3 billion loan owed to Rivatex East Africa Limited, and accumulated Sh1.1 billion in unpaid bills as of June 2020.
TU-K has also frozen recruitment of new staff and promotions for the 2024 - 2025 financial year and suspended contract renewals beyond one year. To further cut costs, the university plans to replace 120 full-time contract staff with part-time lecturers, expecting to save Sh158.8 million annually.
The report reveals TU-K is running on a Sh502 million budget deficit for the 2024 - 2025 financial year. It received only Sh1.7 billion out of the approved budget of Sh3.8 billion.
"The university is currently facing significant financial challenges, including pending bills and the non-remittance of statutory and third-party deductions dating back to 2013," the report states.
In addition to the wage bill, the university is burdened by Sh12.9 billion in liabilities, including unpaid staff pensions, statutory deductions, and arrears tied to a stalled staff retirement benefits scheme, which was wound up in July 2024 due to financial constraints.
“The university has committed to making funds available during the financial years 2025/26, 2027/28, and 2028/29 to offset the outstanding debts of the TU-K Staff Retirement Benefits Scheme,” the report states.
According to the report, the financial crisis has paralysed key infrastructure projects. Construction of Blocks I and T — vital for expanding learning space — stalled in August 2023 due to non-payment. The contractor, Messrs China Jiangxi International (K) Ltd, is now demanding Sh604 million in penalties and outstanding fees.
“The risk of the stalled project, Blocks I and T, could lead to high penalties for idle plants, machinery, equipment, labour, assets, overheads, and interests on delayed payments,” the report warns.
Staff at TUK called off their strike on March 17 2025, after signing a return-to-work-formula (RTWF) with the university management and the university's staff unions.
According to the report, TU-K holds Sh8.6 billion in assets but grapples with Sh12.99 billion in liabilities, largely from statutory deductions and staff pensions. The university now receives only Sh63.3 million in monthly capitation against a payroll of Sh272 million.
“The TU-K council, working alongside the Ministry of Education, has devised a long-term repayment strategy to tackle the mounting debt, estimated at Sh12,990,879,713. The plan spans from the 2024 - 2025 financial year through to 2031 - 2032. For the current financial year, a net payroll support of Sh145,932,379 is allocated to cover expenses from January to June 2025.
In the 2025 - 2026 financial year, Sh1,227,602,782 is earmarked as strategic intervention funds to address outstanding obligations, including pension arrears, union dues, and staff medical claims. This phased approach aims to restore financial stability while ensuring the university remains operational," reads the report.
Further the report notes that the university is currently facing significant financial challenges, including pending bills and the non-remittance of statutory and third-party deductions dating back to 2013.
“These issues have resulted in severe budgetary constraints, making it imperative to explore alternative resource mobilization strategies. TU-K is considering the following strategies in handling the pending bills,” it read.
