The Daily Nation of 17th January 2024 has reported that the Kenya public universities are struggling to remain afloat after the salaries, wages, retirement benefits and medial cover premiums jumped by a fifth to hit Ksh. 45.33 billion in last year. The total pending bills in the 42 public universities and university colleges swelled by 16.66 percent to hit 61.25 billion, all of which imply that these entities owe many suppliers and contractors money through which they could have used to stimulate economic growth. There is need for the public universities in Kenya to remain afloat and become less dependent on the exchequer to run their programmes. Public universities are facing five key challenges to remain afloat, namely: One is increased emergence of alternative learning models like online learning models; secondly is inability of the public sector to fund all the requested university budgets due to the austerity measures and debt repayment requirements; thirdly is the perception of low returns on investments in higher education; fourthly is the changing demographics, preferences for education and the greater desire to enroll for technical and vocational courses that reduces university numbers; and fifth is the consistent growth in services and operating costs, including administration costs such that some universities spend almost 70 percent on administrative and 30 percent on actual teaching and research activities.
Universities can increase their revenues through six ways. First, devise ways of increasing student enrolment by leveraging on technology and social media to attract, retain students and also market the various courses and other products. Secondly, increase and expand their programmes portfolio, including launching new ones that address market needs. Thirdly, commercialize research, patents and innovations and get more research funds locally and internationally. Fourth, invest in new business ventures including implementing online training, executive education and adult learning. Fifth, 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 university city approach, and selling merchandize.
Sixth, universities need to be innovative to attract more funds, which can be done through six ways namely: one, 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 