International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VII, July 2020 | ISSN 2454–6186

Funding Challenges and Their Effect on Growth of Public Universities in Kenya: A Case of Pwani University

Wilmina Uchi Tunje, Dr. Kenneth Muschelwicz
Pwani University, Kenya

Abstract: Funding is a central pillar in the growth and development of any organization. The Kenyan Government funds public universities through annual budgetary allocations with a view of achieving its national goals. Over the years, demand for university education in Kenya has increased exponentially, thereby triggering growth. This has forced public universities to operate with an element of financial distress. The presence of financial trouble in public universities has led to limited growth. The study sought to assess the effects of funding challenges on the growth of public universities in Kenya using Pwani University as a case study. The study targeted top management, Deans of schools, Chairpersons of departments, and Heads of administrative sections. The study used a cross-sectional survey research design, and questionnaires were used as the primary tool of data collection. Data was processed and analyzed with the aid of the Statistical Package for Social Sciences (SPSS) software. Descriptive and inferential analyses were duly conducted. The study revealed that funding challenges affect the growth of Pwani University as supported by an R-value of 71.9%. Further, the findings also revealed that problems with internally generated funds greatly influence the growth of the University as supported by a p-value of 0.809. The study recommends that public universities diversify their income generation activities to sustain and foster their growth.

Keywords: Development Grants, Funding Challenges, Growth, internally generated funds, Public Universities, Recurrent Grants.

I. INTRODUCTION

Worldwide, governments play a significant role in higher education funding. In the recent past, there have been increased cases of deficits in annual budgets of public universities. According to (World Bank, 2018), the problem of higher education funding is more persistent in African countries. However, universities in Sub-Saharan Africa are the most financially challenged (Teferra, 2015). In Kenya, the situation is similar to that of other African countries. For example, during the 2014/2015 financial year, the estimated budgetary allocation for all public universities was KShs. 45 billion, but the actual funding received was KShs. 33 billion. Similarly, in the financial year 2015/2016, the estimated budget allocation was KShs. 50 billion and the actual capitation received was KShs. 35 billion (GoK, 2016).