The National Treasury has apportioned an additional Sh1.8 billion to Moi University to pay its employees and meet other recurrent expenses in the current financial year amid financial and administrative challenges in a bid to turn around the troubled institution.
Disclosures contained in the newly tabled supplementary budget show that the approved estimates towards salaries and other recurrent expenses for the Eldoret-based university rose from Sh4.17 billion to Sh6.44 billion for the year ended June 2025.
Moi University’s appropriations in aid (A.I.A) – which is deducted from the State’s funding – rose by Sh456.4 million from Sh2.67 billion to Sh3.12 billion in the amended approved estimates.
The disclosure further shows that overall funding to the State Department for higher education and research grew 12.8 percent to Sh135.94 billion from Sh119.24 billion, part of which went to supporting Moi University out of its financial hole.
This comprises Sh135.4 billion for current expenses and Sh577.8 million for capital expenditures, respectively.
“This reflects an increase of Sh16.1 billion under current expenditure to cater for implementation of the Universities Collective Bargaining Agreement (CBA), strategic intervention under Moi University and additional Appropriation in Aid under Public Universities,” the Treasury said in its disclosures.
“The Capital expenditure has been reduced by Sh642.2 million due to budget rationalisation with Sh150 million allocated under Koitalel Arap Samoei University College for infrastructure improvement.”
The output performance for Koitalel Arap Samoei University College towards the completion of a tuition block was revised upwards from 20 percent in the current financial year to 80 percent attributed to the increased funding.
Moi University has since 2016 experienced a phase of drastic financial downturn due to a myriad of factors including mismanagement and dried funding amid dwindling student enrolment numbers.
For example, student enrolment at Moi University dipped to about 20,000 in 2023, down from 50,000 in 2015.
Moi University’s financial woes have recently seen both teaching and non-teaching staff down their tools with accusations that the institution's management flouted a return-to-work formula agreed last year.
This follows delayed payment of staff salaries, even after President William Ruto promised to set up a committee to review problems facing the institution.
In the deal, the union secured Sh7.7 billion under the 2021/2027 CBA to be implemented in two phases of Sh4.3 billion and Sh5.2 billion in the 2025/2026 and 2027/2027 financial years.
Among other financial irregularities under probe at the university include failure to remit Sh4 billion in payroll deductions, defaulted Sh3 billion loan owed to Rivatex East Africa Limited, and accumulated Sh1.1 billion in unpaid bills as of June 2020.
The Treasury in its supplementary budget has apportioned Egerton University an additional Sh698.9 million, Sh644.2 million to the University of Nairobi, Sh502.7 million to Kenyatta University, and Sh422.3 million to the Technical University of Kenya.
Jomo Kenyatta University of Agriculture and Technology (JKUAT) received an additional appropriation of Sh412 million, Maseno University (Sh178.2 million), and Masinde Muliro University (167.05 million).
Other significant bailouts were to the University of Eldoret amounting to Sh161.9 million.
