Moi University faces auction over Ksh1 billion court battle
Moi University faces auction over Ksh1 billion court battle
Moi University is staring down the possibility of an auction as a deepening financial crisis threatens to shut down operations, disrupt learning, and leave thousands of students and staff in limbo amid a billion-shilling court battle.
The unfolding crisis revolves around a long-running legal dispute in Eldoret High Court Civil Case No. 51 of 1999 between Moi University and Vishva Builders Limited, now reaching a critical stage.
Documents show that a garnishee application, filed on February 4, 2026, has already frozen the university’s bank accounts, effectively paralysing its ability to run day-to-day operations and meet financial obligations. A garnishee order allows a third party to surrender money through a legal notice to settle a debt or claim.
“The University is facing serious financial constraints coupled with the garnishee order nissi that is in place,” stated the letter.
According to the documents, the institution has now made a last-minute plea to one businessman that it owes, asking for a 60-day postponement of a court ruling scheduled for April 16, 2026, to allow negotiations and prevent further damage.
In a letter dated April 15, the university warns that the court order has already crippled operations, cutting off access to basic services and pushing the institution dangerously close to collapse.
“As a result of the order nissi, the University’s operations have been crippled and the possibility of having it closed down is high in the event the garnishee order nissi is made absolute,” stated the letter.
The documents reveal that the situation at the university is dire, particularly for students, indicating they can no longer access essential learning materials, sit for examinations, or rely on basic services such as water, sanitation, electricity, and safe accommodation.
Additionally, staff members have also gone unpaid, raising fears of unrest within the campus community, while banks are reportedly threatening to move in and recover unpaid loans tied to the university’s accounts.
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The university further states that the financial strain extends further, with statutory deductions to bodies such as KRA, NSSF, and SHIF, and that execution on unremitted loans and statutory deductions, including KRA, NSSF, and SHIF, remains unpaid.
In the letter, the institution has also cautioned that the implications extend beyond its internal struggles, warning that students, staff, donors, the government, and the public could be affected if the crisis escalates.
A proposed consent written to the High Court between both parties seeks to defer the ruling, lift the garnishee order, and allow structured negotiations, including an immediate down payment of Ksh50 million from the frozen accounts to settle part of the Ksh1 billion that it owes.
Part of the agreement states, “THAT the Ruling scheduled for delivery on 16th April 2026… be and is hereby deferred,”
If approved, it implies that the matter will be mentioned again on June 16, 2026, for confirmation of settlement or further court directions, offering a narrow window to resolve the dispute and avert a full-scale institutional shutdown.
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