News that lecturers at my alma mater, Egerton university will be commencing their strike on 1st January 2024 over failure to honour the Collective Bargaining Agreement (CBA) is worrying because other lecturers and researchers at the public universities have such challenges, an issue which needs to be addressed once and for all. Universities are faced with inadequate financial resources. In the 1980’s and 90’s university lecturers earned the same salaries with the Permanent Secretary, equivalent of the Principal Secretary today and as such, most of the lecturers and researchers were committed to research, teaching and innovation. It is hoped we can go back to such levels and many Professors and doctors will fill the classrooms. The government is trying to address financial challenges in the universities. All public universities in Kenya are under the Performance Contracting (PC), and one of the first things that entities in the Performance Contract commit to do each year is the financial stewardship, which measures absorption of allocated public sector funds, which ensures that public entities are scored on how efficient they utilize what has been allocated to them in a financial year; generation of local revenues (Appropriations In-Aid (A-I-A), where public universities and other entities are scored on how well they can come up with local revenue generating activities which should ideally solve some cash problems and which can reduce the cases of pending bills; absorption of externally mobilized resources for entities with external support; and addressing pending bills ratio.
Universities can do four major things to address their financial challenges. First, they must commercialize research and get more research funds locally and internationally. Secondly, they must invest in new business ventures including implementing online training, executive education and adult learning. Thirdly, they must tap into the auxiliary revenue generating activities that includes income generating activities focusing on students like arranged accommodation, catering, renting and leasing of properties, provision of shopping activities within the university, embracing the university city approach, and selling merchandize. Fourthly, universities need to be innovative to attract more funds by using six ways: First, use of philanthropy and charity where philanthropists and charitable organizations can fund some programmes and project in exchange for naming rights or other motivations. Secondly is use of fundraisings. Thirdly is use of diaspora bonds and remittances. Fourth is the use of social impact funds that are sourced from venture capitalists and social enterprise organization. Fifth is the use of debt swaps and sixth is the commercialization of research programmes and consultancy. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti
Dr. Daniel Mutegi Giti 