REVENUE DIVERSIFICATION AND SUSTAINABILITY OF PUBLIC UNIVERSITIES IN KENYA
REVENUE DIVERSIFICATION AND SUSTAINABILITY OF PUBLIC UNIVERSITIES IN KENYA
Jackline Bett - Student, Master of Arts in Public Policy and Administration, Kenyatta University, Kenya
Margaret Kosgei - Lecturer, Department of Public Policy and Administration, Kenyatta University, Kenya
ABSTRACT
Kenya's public universities are major drivers of economic growth because they develop human capital, encourage innovation, and interact with the community. These institutions are essential in advancing equitable and sustainable development as well as Kenya's shift to a knowledge-based economy. Thus, public universities' continued existence is essential to Kenya’s economic development. Universities seem to be stabilized when their revenue sources are diversified because they are less susceptible to changes in government financing. Government financing is provided to public institutions to support their sustainability; nonetheless, there has been an increasing funding deficit recently which threatens the sustainability of the institutions. Government funding to universities under the Differentiated Unit Cost (DUC) model has been steadily decreasing over the past few years, falling in 2022 compared to the previous years. Therefore, public universities' ability to continue operating is under jeopardy, which calls for the current inquiry. This research sought to explore the effect of revenue diversification particularly consultancy services and public-private partnership on sustainability of public universities in Kenya. The Resource-based and contingency theories provided the framework upon which the study was based. The study utilized a cross-sectional survey research design. The target population consisted of staff members of Kenya's state universities. Teaching and non-teaching staff was the units of observation, and the university was the unit of analysis. A simple random sampling technique was used to choose 241 non-teaching staff members and 143 teaching staff members from the sample size of 384 respondents. Primary data which was sourced through the administration of questionnaire was utilized as the main data source for the study. The research instrument's validity was assessed using content and face validity while reliability was tested using Cronbach Apha with a coefficient of 0.7 as the threshold. Descriptive and inferential statistics was used to analyse the data and results was presented in the form of table, charts and graphs. To ensure the accuracy and reliability of the estimates a number of diagnostic tests was carried out which include multicollinearity, normality, heteroscedasticity and autocorrelation every ethical guideline was appropriately adhered to. Findings demonstrated that consultancy services had positive and significant (β=.189, ρ=.000) effect on the sustainability of these Kenyan public universities. Public-private partnership revealed a significantly positive (β=.252, ρ=.000) effect on the sustainability of Kenyan public universities. Further results indicated that philanthropic donations had positive but insignificant (β=.055, ρ=.434) effect on the sustainability of Kenyan public universities. The study recommends that cconsultancy services should be institutionalized within the public universities by creating specific consultancy bureaus and definite contractual structures. There should be incentives that will encourage staff participation in consultancy, such as revenue sharing programs and professional recognition. Project writing, contract negotiation, and service marketing training need to be given priority to enhance uptake and efficiency. Public-private partnerships must be prioritized due to their potential in providing a central means of mobilizing resources in universities. Institutional and national policy frameworks must be transparent and accountable and share risks fairly in PPP contracts. Cooperation in fields like infrastructure, ICT development, and research commercialization needs to be intensified, and the government ought to offer an environment of facilitation in the form of favorable legislation and checks and balances.
