Moi University has begun showing signs of recovery after years of instability, but lawmakers have been told that a huge debt burden accumulated over more than a decade continues to threaten the institution's future, forcing management to seek additional government funding to keep operations running.
The university's leadership appeared before the National Assembly Committee on Education and revealed that the institution is carrying pending bills amounting to Sh9 billion while also seeking an additional Sh1.9 billion for recurrent expenditure in the 2026/27 financial year.
Led by Acting Vice Chancellor Prof Kiplagat Kotut, the management said the debt stems from annual deficits that the university has been recording since 2014, creating a financial burden that has continued to grow over the years.
“We request that this Committee consider adding Sh1.9 billion to support recurrent expenditure for FY 2026/27. Secondly, the issue of pending bills remains a major concern for us, and it currently stands at Kshs 9 billion as a result of the university registering a deficit since 2014,” Prof Kotut said.
The meeting, chaired by Tinderet MP Julius Melly, was convened to assess the university's progress in implementing recommendations previously issued by Parliament following concerns over financial management, governance and accountability.
Melly reminded the university that lawmakers had earlier raised questions over the handling of public funds after audit reports flagged several issues.
“We previously engaged the University regarding financial management and accountability following audit reports that raised concerns about financial irregularities, including alleged misuse of funds in construction projects, unpaid bills, and other questionable transactions, which resulted in substantial financial losses,” Hon. Melly told the Institution.
The committee also sought an update on measures taken by the current leadership to restore confidence in the institution and address immediate challenges that had contributed to its decline.
In response, the management said efforts to rebuild trust among students, parents and other stakeholders were already producing results.
University officials reported that enrollment has steadily increased since the current team took over, a development they attributed to improvements in academic operations and student services.
“In 2024, the number of students was 5,000. This moved up to 6,800 last year, and this year we are seeing the number move to 10,000. What we have done is move students' progress through the academic calendar and ensure they graduate on time. We are also sorting out the issue of missing marks,” Prof. Khaemba Ongeti, the DVC in charge of Academics, Research, Extension, and Student Affairs, told the Committee.
The management said one of its key priorities has been ensuring that students progress through their studies without unnecessary delays and that graduation schedules remain predictable.
Officials also pointed to improvements in handling examination records, saying longstanding complaints about missing marks have largely been addressed.
According to the university leadership, reforms introduced over the past year have helped stabilise learning programmes and improve governance structures despite limited financial resources.
“We have restored stability to the academic programmes, strengthened our governance system and resumed regular graduations,” Prof Midamba told MPs.
“The reforms and the strategies so far undertaken have helped the university remain afloat amidst the prevailing challenges occasioned by limited resources,” Prof Kotut told the committee.
“I firmly believe that with your support, our university will be stable, sustainable and experience growth in its teaching, research and extension mandate, essential ingredients for our national development.”
Despite the progress, management admitted that financial pressures continue to affect day-to-day operations.
“The university is not able to meet its monthly financial obligations as and when they arise,” he said.
The institution is also seeking support to implement its long-term development plans and settle outstanding obligations.
“Financial support should be considered to the value of investment made by Moi University in Rivatex Africa Limited and the role played by the Moi University in increasing access to higher education in the country through establishment of 10 public universities,” Prof Kotut said.
“Fair value compensation for Rivatex East Africa Limited amounting to Sh2.7 billion to enable investment in School of Engineering, infrastructure and partly settle outstanding obligations.”
Lawmakers were further informed that the university requires Sh4.7 billion to meet commitments arising from the Return-To-Work Formula that ended industrial unrest.
Documents presented to the committee show that Sh500 million is required for payroll-related deductions, Sh1.25 billion for obligations linked to the 2017-21 Collective Bargaining Agreement and Sh3 billion to clear unremitted loans and outstanding pension contributions.
Committee members acknowledged the progress made in restoring stability at the institution but maintained that accountability and financial discipline must remain a priority as the university pursues recovery.
At the end of the meeting, Melly directed the acting vice chancellor and the university's governing team to submit a comprehensive report addressing issues that lawmakers felt required further clarification.