Moi University is knee-deep in debt, Council chairperson Dr Humphrey Njuguna has confirmed.
This was following revelations by Auditor-General Nancy Gathungu in a 2018-2019 report.
The report showed that the institution of higher learning’s debts had reached over Sh4.5 billion.
Speaking to the Standard, Dr Njuguna attributed the crippling debts to scrapped courses and closure of satellite campuses across the country.
Other challenges facing the institution, he said, are a low enrollment of students and a bloated workforce.
The number of students has over the years reduced from 50,000 to 30,000.
“[It is true] we have financial challenges. I can, however, confirm that the university Council has formulated a plan that would avert the collapsing of the institution,” said Dr Njuguna.
On its plans to stay afloat, Dr Njuguna said, a recently launched 6,500-seater Amphitheatre will help generate income.
“This project will allow the institution to host local and international conferences, promote preservation of the culture and performing arts,” he added.
The varsity also started cultivating apples on its 100-acre farm starting June with the hope of expanding to a 1,000 acres.
Upon maturity in about four years, Moi University will be earning an estimated Sh80 billion from the venture.
Two weeks ago, the Ethics and Anti-Corruption Commission (EACC) launched investigations into embezzlement and ghost workers claims at the varsity.
In a letter to the institution’s Vice chancellor Prof Isaac Kosgey, the commission demanded employment records of all teaching and non-teaching staff since July 2018.
Reports indicate that at least 1,000 of 10,000 staffers at the institution are ghost workers.
But according to Dr Njuguna, the reports are false because “The institution has a strong Human Resources management system that wouldn’t allow existence of ghost workers.”