Last Updated on April 16, 2026 9:06 pm by Mildred Khavwani

Featured image source: Moi University

Moi University has been thrown into fresh financial turmoil after the High Court ordered the freezing of 10 of its 69 bank accounts in a move aimed at recovering Sh1.1 billion owed to a contractor. The decision has intensified concerns over the institution’s ability to pay staff salaries, support student services, and maintain normal operations.

The Moi University accounts frozen ruling was issued by the Eldoret High Court in February 2025 after Vishva Builders Limited successfully sought orders to recover money linked to a construction contract dating back to 1990.

According to court documents, the contractor was awarded a tender worth Sh476.3 million to construct the university’s Faculty of Science complex. However, after completing part of the project, the university paid only Sh57 million, leaving an unpaid balance of Sh185 million.

Over the years, the debt accumulated interest and legal costs, pushing the total amount owed to Sh1.1 billion, forcing the contractor to seek legal enforcement through the courts.

Court Orders 68 Moi University Accounts Frozen

In the ruling delivered in February 2025, the High Court directed seven banks holding Moi University accounts to release funds to settle the debt.

The affected banks include:

• National Bank
• KCB Bank
• Co-operative Bank
• Equity Bank
• Absa Bank
• Standard Chartered Bank
• Access Bank

The court order targeted 68 accounts, effectively freezing the university’s access to a large portion of its operating funds.

This is not the first time Moi University has faced such legal action. On August 31, 2024, Justice Anthony Mrima of the High Court in Eldoret ordered the attachment of Sh132.7 million from Moi University’s National Bank and Co-operative Bank accounts over the same contractor debt dispute. According to the ruling, the money was to be release to Vishva Builders Limited as part of the outstanding debt owed by the university.

The repeated freezing of accounts shows that the university has failed to honour court orders and debt repayment plans for years.

Moi University Already Struggling Financially

The Moi University accounts frozen crisis comes when the institution is already under severe financial pressure.

In April 2025, reports showed the university had:

• Sh4 billion in unremitted payroll deductions
• Sh3 billion debt owed to Rivatex East Africa
• Sh1.1 billion in unpaid supplier bills
• Ongoing staff salary delays
• Planned staff layoffs due to budget shortages

These figures point to a university battling one of the worst debt crises in Kenya’s public education sector.

To help stabilise the institution, the National Treasury allocated an extra Sh1.8 billion in February 2025 for salaries and recurrent expenses. This increased Moi University’s budget from Sh4.17 billion to Sh6.44 billion for the 2024/2025 financial year.

However, despite this government support, the institution remains under intense pressure due to pending debts and legal claims.

Staff and Students Face the Real Impact

The freezing of accounts could directly affect workers and students at Moi University.

When bank accounts are frozen, the university may be unable to:

• Pay staff salaries on time
• Procure learning materials
• Fund student welfare services
• Facilitate examinations and registrations
• Maintain day-to-day operations

This means the Moi University accounts frozen crisis could disrupt learning programmes and trigger further staff unrest.

Already, the university has announced plans to lay off some workers to reduce operational costs. If the financial situation worsens, students could experience delays in academic calendars, reduced services, and uncertainty over their studies.

For many parents and guardians, this raises fears over the future stability of one of Kenya’s biggest public universities.

A Wider Crisis in Kenya’s Public Universities

The financial challenges at Moi University are part of a wider crisis affecting public universities in Kenya.

Many universities are struggling with:

• Delayed government funding
• Huge pending bills
• Reduced student enrolment
• Rising operational costs
• Poor financial management

Recent parliamentary reports estimate that public universities in Kenya owe more than Sh75 billion in pending bills and debts.

Moi University alone is said to have debts nearing Sh8.8 billion, making it one of the most financially troubled institutions in the country.

This raises serious questions about financial oversight, accountability, and the sustainability of public university funding in Kenya.

Need for Urgent Action

The Moi University accounts frozen crisis shows the urgent need for reforms in university financial management.

Without immediate intervention, the institution may continue facing:

• Salary delays
• Academic disruptions
• Supplier lawsuits
• Staff layoffs
• Declining service delivery

The government, university management, and education regulators now face pressure to implement solutions that can rescue the institution from deeper financial collapse.

For Moi University, this is more than a debt issue—it is a test of whether one of Kenya’s top public universities can recover from years of financial strain.

If no lasting solution is found soon, the impact will be felt most by students, staff, and the wider higher education sector.

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