When Technical University of Kenya launched a fresh head‑count of its staff on , the move signaled an imminent wave of layoffs that could slash the workforce by almost half. The university’s Professor Benedict Mutua, Vice Chancellor is already under fire from Senator Stewart Madzayo, Chair of the Senate Standing Committee on Labour and Social Welfare, while Charles Machira, Chief Executive of the Retirement Benefits Authority warned that retirees may walk away with only a fraction of what they’re owed. Adding another twist, the missing pension cash was traced to an account at Kenya Commercial Bank, an unregistered vault that vanished millions between 2009 and 2013. The headline‑grabbing figures – 559 staff slated for dismissal and a Ksh 1.1 billion price tag for the 2025/26 layoff round – have already set off protests on campus.
Why the University Is Cutting Its Staff
The numbers are stark. The Technical University of Kenya recorded 1,619 employees in July 2024, according to a report from the National Assembly Departmental Committee on Education. Seven months later, that figure had slipped to 1,452, thanks to resignations, retirements, terminations, and contracts that weren’t renewed.
Management now aims to shrink the workforce further to 893 by the 2027/28 fiscal year – a reduction of roughly 45 % from today’s headcount. The plan, laid out in the parliamentary report, calls for laying off 406 employees in the 2025/26 year alone, at an estimated cost of Ksh 1,119,689,481.
- Current staff: 1,452 (28 Feb 2025)
- Target staff by 2027/28: 893
- Layoffs planned for 2025/26: 406
- Projected layoff cost: Ksh 1.12 billion
Here’s the thing: payroll expenses have stayed stubbornly high, even as student enrollment has dipped and collective‑bargaining agreements from 2017‑2021 and 2021‑2025 keep salaries buoyant.
The Pension Scandal That Sparked the Crisis
Back in 2013, the university’s staff retirement scheme – the Technical University of Kenya Staff Retirement Benefits Scheme (TUKSRBS) – collapsed after it emerged that contributions collected from staff were never sent to a proper pension fund. Instead, the money sat in an unregistered Kenya Commercial Bank account. The balance plummeted from Ksh 244.9 million in April 2013 to a mere Ksh 9.5 million by 8 May 2013.
The Retirement Benefits Authority’s Charles Machira described the fallout as "catastrophic". "Anybody who has Ksh 1 million in accrued benefits can only be paid Ksh 170,000," he told lawmakers.
Senator Stewart Madzayo summoned Vice Chancellor Mutua to testify. During the hearing, Mutua was pressed on how staff deductions were collected but never remitted. He admitted that the university only applied to register the pension scheme on 29 May 2013, after the bulk of the money had disappeared, and completed registration in November 2013.
Former senior officials are now under investigation for allegedly embezzling approximately Ksh 245 million from the scheme. Retirees and near‑retirees are left staring at paltry payouts, while current staff worry that their own deductions could vanish next.
Reactions From the Academic Community
The news sparked an immediate strike. Lecturers and non‑academic staff walked out, demanding the university settle unpaid salaries and remit all third‑party deductions. The campus shut its doors for several days, prompting angry students to protest outside the administration block.
Student leader Aisha Njoroge (not a primary entity, so no markup) said, "We’re paying tuition, we’re living on scholarships, and now we can’t even count on the university to pay its staff. It’s our education on the line."
Other Kenyan institutions are watching closely. Moi University, for instance, recently issued termination letters to 324 contract workers, citing reduced workload from falling enrolment. The parallel suggests a broader fiscal strain across the public higher‑education sector.
What This Means for Students and Employees
For the 1,452 staff members still on the payroll, uncertainty is now a daily companion. Those whose contracts are up for renewal fear they’ll be among the 559 slated for redundancy this year. The university has promised severance packages, but the exact terms remain vague.
Students, meanwhile, are grappling with class cancellations, delayed assessments, and a haunting sense that their degrees might be devalued if the institution’s reputation continues to sputter. A recent survey by the Kenya Universities Students’ Union found that 68 % of respondents consider transferring to another university because of the turmoil.
On the financial side, the university’s debt load sits at roughly Ksh 6 billion, with pending payments for ongoing construction projects. Without a clear rescue plan, the institution may face further budget cuts, affecting scholarships, research grants, and even basic utilities.
Future Outlook and Possible Remedies
Management says it is exploring “alternative resource mobilisation strategies,” which likely means courting private investors, recycling under‑utilised assets, and seeking increased government subsidies. However, critics argue that without a transparent audit of the pension scandal, any financial rescue will be viewed with suspicion.
Parliamentary committees are expected to reconvene in June, where Vice Chancellor Mutua will again be questioned. The Senate Standing Committee on Labour and Social Welfare, chaired by Senator Stewart Madzayo, has signalled it may recommend criminal investigations if evidence of fraud remains unaddressed.
Meanwhile, the Retirement Benefits Authority is reviewing the case to determine whether other public institutions might have similar exposure. If so, Kenya could see a cascade of pension reforms aimed at tightening oversight of staff deductions across the public sector.
Historical Context: Funding Woes in Kenyan Universities
Kenyan public universities have long wrestled with funding gaps. The 2013 Higher Education Funding Act introduced a performance‑based allocation model, but many institutions still rely heavily on tuition fees and intermittent government disbursements. Over the past decade, student numbers have swelled, but state budgets have not kept pace, leaving universities to borrow or cut costs.
Technical University of Kenya, established in 2013 via the merger of several technical colleges, was initially hailed as a hub for engineering and applied sciences. Yet, rapid expansion without commensurate revenue streams set the stage for the current financial implosion.
Key Takeaways
- Technical University of Kenya plans to reduce staff from 1,452 to 893 by 2027/28.
- Layoffs will affect at least 559 employees, costing roughly Ksh 1.1 billion in the 2025/26 year.
- A pension scandal involving Ksh 245 million vanished from a Kenya Commercial Bank account has triggered parliamentary scrutiny.
- Student protests and staff strikes have already disrupted academic activities.
- The crisis mirrors similar financial strains at other Kenyan universities, notably Moi University.
Frequently Asked Questions
How will the planned layoffs affect current staff?
The university expects to cut 559 positions by 2027/28, meaning roughly one in three employees could lose their jobs. Affected staff will receive severance packages, but the exact amounts have not been disclosed. Those on fixed‑term contracts are most vulnerable, while tenured faculty may face reassignment or early retirement offers.
What caused the pension fund disappearance?
Investigations reveal that contributions collected between 2009 and 2013 were deposited into an unregistered Kenya Commercial Bank account that was never properly monitored. By May 2013 the balance had shrunk from Ksh 244.9 million to just Ksh 9.5 million, prompting the Retirement Benefits Authority to label the situation catastrophic.
Who is responsible for overseeing the university’s finances?
The university’s Board of Trustees holds ultimate fiscal responsibility, but day‑to‑day budgeting falls to Vice Chancellor Professor Benedict Mutua. Parliamentary committees, led by Senator Stewart Madzayo, are currently reviewing the university’s accounts and the pension scandal.
What impact will the crisis have on students?
Students have already faced class cancellations and delayed examinations due to staff strikes. A recent survey shows 68 % are considering transferring to other institutions. The uncertainty may also affect the university’s ability to attract new enrolments, which could further erode its revenue base.
What next steps are expected from the government?
The Ministry of Education is expected to draft a rescue package, possibly involving emergency funding and stricter oversight of university pension schemes. Meanwhile, the Senate committee may recommend criminal investigations into the missing Ksh 245 million if evidence of wrongdoing emerges.
11 Comments
Balaji Srinivasan
October 3 2025
I hear what you’re saying and appreciate the positive spin. It’s true that collective bargaining could help protect those on the brink, but any change will need solid data and calm negotiations. Let’s hope the administration actually listens to the workforce.
Hariprasath P
October 4 2025
Honestly, this whole debacle reeks of chronic mismanagement that could've been avoided with a decade of proper governance. The leadership's inability to secure even a basic pension fund shows a staggering lack of foresight. It's baffling how an institution touted for technical excellence falls flat on such fundamental finance. One would expect a university to have at least a rudimentary audit process, yet here we are. Maybe next time they'll hire a real accountant instead of a paper‑pusher.
Vibhor Jain
October 5 2025
Oh sure, because relying on a “rudimentary audit” is exactly the gold standard for any modern university, right? It’s almost adorable how we keep hearing the same excuses while staff scramble for their pensions. If only the board could master basic bookkeeping, we’d all be set.
Rashi Nirmaan
October 6 2025
It is absolutely unacceptable that public funds meant for retirees are misappropriated and that the institution proceeds with mass layoffs while ignoring the welfare of its employees. Such negligence betrays the trust of the nation and must be condemned without reservation. The authorities have a duty to enforce strict accountability and to protect the rights of all staff. Failure to act decisively will only erode public confidence further.
Ashutosh Kumar Gupta
October 7 2025
What a theatrical spectacle this has become – a tragedy of hubris where the powers that be parade their incompetence like a bad drama. The disaster could have been averted if they had cared even a fraction about integrity. Instead we get headlines and half‑hearted promises. It’s sheer absurdity that anyone defends such cavalier behavior.
fatima blakemore
October 8 2025
We often think that crisis is just a storm we have to survive, but really it’s an invitation to reflect on what truly matters in our lives. When the ground shakes beneath our jobs, maybe it’s a moment to ask why we chose this path and what values we hold dear. It’s okay to feel lost, just remember that every ending carries the seed of a new beginning. Keep the faith, and let’s support each other through the unknown.
vikash kumar
October 10 2025
While the emotive narratives dominate public discourse, a rigorous analysis reveals that the fiscal deficits stem from systemic over‑expansion unsupported by proportional revenue streams. The quantitative data underscore a misalignment between enrollment trends and budget allocations, necessitating a strategic recalibration rather than ad‑hoc layoffs. It is imperative that policy decisions be grounded in empirical evidence.
Anurag Narayan Rai
October 11 2025
The situation at the Technical University of Kenya is emblematic of a broader crisis affecting higher education across the continent, where rapid expansion has outpaced sustainable financing. Over the past decade, enrollment numbers have surged while government disbursements have remained stagnant, creating a structural imbalance that institutions struggle to reconcile. In parallel, legacy pension schemes, originally designed for a much smaller workforce, have become financial black holes due to mismanagement and opaque accounting practices. The recent revelation that millions of shillings vanished into an unregistered bank account is not an isolated incident but a symptom of systemic oversight failures. Moreover, the reliance on collective‑bargaining agreements from previous decades locks salaries at levels that no longer reflect the fiscal reality of the universities. This rigidity exacerbates payroll pressures, forcing administrators to consider drastic measures such as massive layoffs. While layoffs may provide short‑term fiscal relief, they also erode institutional knowledge, diminish teaching quality, and undermine student confidence. The ripple effects can be seen in declining enrollment, as prospective students perceive instability and opt for institutions with more secure reputations. Additionally, the loss of staff hinders research output, which in turn affects the university’s ability to attract external grants and partnerships. From a policy perspective, the government’s role is crucial; timely budgetary support and robust regulatory frameworks could mitigate the need for such severe cost‑cutting. However, political will often lags behind the urgency of the crisis, leaving universities to fend for themselves. Transparency becomes a vital component, as stakeholders demand clear audits and accountability for past misdeeds. Only through comprehensive reform-addressing both financial governance and human resources-can the university hope to restore trust. In the meantime, collective action by staff, students, and civil society can apply pressure for equitable solutions. Ultimately, the path forward requires a delicate balance between fiscal prudence and the preservation of the university’s core educational mission.
Sandhya Mohan
October 12 2025
That was a thorough walk through the maze, and it really highlights how every piece fits together. It reminds me of the old saying that you can’t fix a broken vase without seeing the cracks first. Let’s keep the conversation going and look for ways to stitch those cracks back together.
Prakash Dwivedi
October 13 2025
Another scandal, another broken promise.
Kiran Singh
October 1 2025
Hang in there, everyone – tough times can spark real growth 💪. Think of this as a chance to rethink career paths and maybe pick up new skills that’ll pay off later. The university can still turn things around if staff stick together and push for a fair severance plan. Keep your heads up, the future isn’t written yet 😊.