The Dynamics of Higher Education Funding in Kenya: Challenges, Innovations, and Sustainability Efforts of Public Universities in the Face of Crisis
DOI:
https://doi.org/10.52627/managere.v6i3.539Keywords:
Higher Education Funding, New Funding Model, Means TestingAbstract
This study examined the funding model of higher education in Kenya, particularly in public universities, focusing on the challenges and opportunities faced due to the decline in government funding allocations and the implementation of the Means Testing Instrument (MTI)-based New Funding Model (NFM). The research method used was a qualitative approach with a case study design, which included in-depth interviews and direct observation in five selected public universities: University of Nairobi, Kenyatta University, Moi University, Egerton University, and Strathmore University. Data was collected from 200 students and 5 Deputy Vice Chancellors for Finance and Planning (DVC AFP) and analyzed using the Miles and Huberman approach. The results showed that the funding of public universities in Kenya relies heavily on declining exchequer allocations, forcing institutions to seek alternative sources of funding such as tuition fees, research grants, and self-funding initiatives. The new funding model, which aims to distribute funds equitably based on student needs, proved ineffective due to MTI's inaccuracy in assessing financial need. Delays in the distribution of funds and unfairness in the distribution of financial aid exacerbated the situation. The implications of this study point to the need for improvements in the fund distribution mechanism as well as the development of more sustainable sources of self-funding. The study also highlights the need for revisions to the MTI to more accurately assess student needs, as well as increased funding allocations from the government to ensure the sustainability of quality higher education in Kenya.
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