Universities in Kenya are facing existential threats that calls upon stakeholders to come up with adequate reforms and leadership to make these hallowed institutions to stand on their feet. It should be noted from the beginning that higher education institutions play an important role in the pursuant of socio-economic development and democratic agenda for any country.
Universities have been central in addressing the equity concerns by opening doors to previously marginalized and under-represented groups of society, including enabling such economically disadvantaged groups of people like women, children and older persons access higher education. Universities play an equalizing and citizen building roles by admitting people of all classes and walks of life. They also pave the way for entrenching prosperity for the graduates and the societies at large by creating wealth mostly through tax incomes, and hence they have been seen as motors of economic development in any country.
The challenge for higher education has been the fact that investments in them assumes time lags in realizing the returns on investments. This is where there is need for public reforms and leadership in order to make these entities play their rightful role in development. Public sector reforms which have been recommended in the country for a long time should have a bearing on higher education reforms as well. This should lead to performance based funding or budgeting to create an environment of quasi-markets. This will address the inherent lack of competition and competitiveness in Kenyan universities.
This is done by introducing paradigm shifts in our universities such that funding is based on indirect –formula driven directives which are tied to inputs, outputs and performance indicators. Some of the suggested financing remedies includes: introduction of deregulation of fees to reflect the per capita cost of education to the extent possible as the students move up the education ladder; education loans for financing education; human capital contracts that work by students committing a part of their future income for financing their education; income contingent loans; graduate taxes; educational vouchers, tax financing and better governance for students.
Finally, is the need for self-financing market determined courses and introduction of specialization in courses. This will make it possible to get financing outside the ambit of the exchequer and more introduction of Public Private Partnerships