Moi University, once one of Kenya’s most prestigious institutions of higher learning, is fighting for its financial survival after a High Court order threatened to freeze all its bank accounts over a debt that has ballooned to more than Sh1.25 billion.

The crisis traces its roots to a construction contract signed in the 1990s for a Faculty of Science complex. What began as a Sh185 million contractual obligation to Vishva Builders Limited has since grown into a Sh1.25 billion liability, driven by nearly three decades of accumulated interest. Daily Nation

In February 2025, lawyer Nelson Havi, representing Vishva Builders, secured a court decree computing the interest alone at over Sh1.08 billion. The High Court subsequently gave the university 30 days to present a credible repayment plan, warning that failure to do so would trigger the attachment of its 69 bank accounts. Daily Nation

The university’s legal team, led by Martin Gitonga, pushed back against the attachment order, arguing that several of the accounts belong to third parties, students, donors, and research funds, and therefore cannot be swept into a blanket enforcement action. The court was expected to issue its ruling on March 26, 2026. Daily Nation

A Deeper Financial Rot

The contractor dispute is only the most visible symptom of a far wider institutional crisis. Acting Vice Chancellor Prof Kiplagat Kotut has been candid about the university’s condition: “We are operating in the red,” he said, pointing to historical bills stretching back more than a decade, a monthly wage bill of Sh450 million, an ageing workforce earning at the top of salary scales, and a dramatic fall in student numbers. Daily Nation

Enrollment has plummeted from 50,000 students in 2015 to just 27,000 by 2021, slashing fee income at a time when fixed costs have remained stubbornly high. Daily Nation

Education Cabinet Secretary Julius Ogamba confirmed that the university is grappling with debts of approximately Sh8 billion, attributing the crisis to years of poor leadership and governance failures. Daily Nation

Staff Bear the Brunt

University lecturers and non-teaching staff have suffered the consequences most directly. The Universities Academic Staff Union (UASU) accused management of failing to honour a return-to-work agreement signed in December 2024, prompting fresh strike threats. The union demanded full payment of salary arrears and implementation of a Collective Bargaining Agreement (CBA) that management has struggled to fund. Daily Nation

Prof Kotut has maintained that without a government bailout, the university cannot meet the monetary clauses of the agreement, as it remains almost entirely dependent on state funding to sustain day-to-day operations. The Eastleigh Voice

In a painful cost-cutting move, the university dismissed over 300 staff members in March 2025, mainly from security, cleaning, hostels, and library departments, citing reduced workloads following the sharp drop in student enrollment. Daily Nation

Government Steps In — But Is It Enough?

The National Treasury has provided some relief. A supplementary budget saw the university’s approved allocation for salaries and recurrent expenses rise sharply from Sh4.17 billion to Sh6.44 billion for the financial year ended June 2025. Business Daily

CS Ogamba stated that the government cannot allow Moi University to collapse, and pledged continued commitment to restoring the institution to its former standing as one of Kenya’s leading universities. Daily Nation

Investigations Underway

Both the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) are probing financial and managerial irregularities at the institution. Among the issues under investigation are a failure to remit Sh4 billion in payroll deductions, a defaulted Sh3 billion loan owed to Rivatex East Africa Limited, and unpaid bills of over Sh1.1 billion as of June 2020. Daily Nation

For an institution that once rivalled the University of Nairobi and Kenyatta University in prestige, the road back will be long and difficult. Whether Moi University can reorganise its finances, satisfy the courts, and restore confidence among students and staff remains one of Kenya’s most pressing education stories heading into the second half of the decade.

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