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The University of Eastern Africa, Baraton has closed four campuses and sacked 300 staff to reduce the high wage bill and help it remain afloat.
The campuses closed are in Nairobi, Kisumu, Kisii and Eldoret, and the affected students have all been admitted to the main campus in Chepterit, Nandi County.
The university, run by the Seventh-Day Adventist Church, has also scrapped a number of courses it deems unnecessary.
The university's vice-chancellor, Prof Philip Maiyo, on Tuesday said the institution has struggled in the past two years to clear pending bills amounting to over Sh600 million owed to suppliers and other creditors.