Kenya: Egerton University plans to send 400 employees home after facing financial crisis

Egerton University plans to send more than 400 employees home as the financial condition of the University gets worsened by the COVID-19 pandemic, according to a news report by Daily Nation.

In a report by the university, the institution has proposed to retrench the staff to ease the payroll burden. The decision has been approved by the university council.

"This will reduce the payroll cost by Sh38.7 million per month," says the report. The annual payroll cost for the university is Sh464.4 million per year.

The vice-chancellor Prof Rose Mwoya has said last month that the university has requested the government to consider providing Sh589.7 million to finance the exercise.

She said the university has implemented strict austerity measures to cut costs.

The institution will start paying full salaries only if the government capitation is enhanced.

"From January 2021, we expect that we will be able to start paying outstanding salaries accruing since April 2020, starting with those who are retiring or leaving services for whatever reason, "said Mwoya.

According to the university, government funding has been shrinking since 2015.

The Universities Academic Staff Union Secretary-General Constantine Wasonga has written to the university demanding the payment of academic staff salaries as indicated in the 2017-2021 collective bargaining agreement (CBA).