Moi University in Kenya has officially acknowledged that it is technically insolvent after years of sustained financial difficulties, prompting the institution to consider major restructuring measures.

The university, based in Eldoret, informed the National Assembly Education Committee that it is struggling under heavy financial pressure, with debts exceeding KSh 8 billion and pending bills rising above KSh 10 billion.

According to university officials, liabilities have grown significantly beyond available assets, making it difficult for the institution to meet its financial obligations.During parliamentary discussions on a special audit for the financial year ending June 30, 2025, Acting Vice Chancellor Prof.

Kiplagat Kotut explained that the university is undergoing a workload analysis aimed at identifying staff who are actively engaged in teaching duties and those who are not.He indicated that employees without assigned responsibilities may face dismissal as part of cost-cutting efforts meant to stabilise operations.The administration argues that retaining non-performing staff is no longer financially viable given the current crisis.Deputy Vice Chancellor Prof.

Loice Maru revealed that staffing levels have already been reduced, with permanent employees dropping from over 2,000 to 1,763, while many casual workers have also been released.

The university attributes its financial strain partly to a sharp decline in student enrolment, which has fallen from over 40,000 to around 12,000 students, significantly reducing revenue.The institution is also working to minimise legal disputes that have added to its financial burden.

Despite the restructuring plan, the university previously faced legal setbacks when a court halted an earlier attempt to lay off about 900 employees, directing management to engage unions in proper consultations.

Parliament continues to scrutinise the institution’s financial situation as stakeholders seek long-term solutions to restore stability at Moi University.