The Strategies Put In Place by Selected Private Universities in Kenya to Address the Issues of Financial Sustainability (Published)
Private universities have a great responsibility of managing financial sustainability and hence the need to explore different strategies that would enhance their financial sustainability. Kenya Vision 2030 requires institutions to develop strategies that will help in achieving its goals. Therefore, this paper explores the strategies administrators in private universities use to manage financial stability. Three major strategies were adopted by selected private universities to enhance their financial sustainability. These strategies include students’ recruitment strategies, internal and external funding strategies and program development, review and diversification. Ludwig Von Bertalanffy’s General System Theory (GST) originally developed in the 1940’s – which later came to be known as System Theory – was the conceptual framework that guided this study. Qualitative grounded theory design was used for collecting, analyzing, interpreting and reporting data. An interview guide was used to collect data for the two research questions that guided the study. Data was collected using self-developed interview schedule, and were digitally recorded and transcribed. The data was then organized manually and analyzed qualitatively through use of codes and formation of categories which eventually developed broader and tentative themes and patterns that brought meaning out of the information collected. Twenty respondents of this study were chosen purposefully from four out of the five universities in Kenya founded as theological colleges and had been chartered as private universities at the time of the study. Triangulation was used for data collection to increase the trustworthiness of the findings. The findings of this study indicate that the strategies that were put in place were not yielding sufficient income because of the many internal and external challenges being faced by these universities. Therefore this study recommends ways of developing, reviewing and diversifying revenue streams (input activities) that will generate adequate income to overcome the challenges in the system that are major impediments to implementation of activities (output) that would lead to establishment of a financial sustainable university.
The Challenges Encountered by the Selected Private Universities in Kenya in Implementing Strategies that Would Lead to a Financially Sustainable University (Published)
Great expectations of high quality education are held by many people due to a high demand of tertiary education in private Kenyan universities. Higher education in Kenya has experienced a lot of numerical growth of the number of universities chartered. As of November 2015, Kenya had a total of 70 chartered universities. Of these, 17 were private chartered ones which had grown in number from 3 to 17 in just two decades (CUE 2015, Chacha 2004,4). That notwithstanding, private universities face numerous challenges, which if not addressed, their sustainability will be threatened. This paper therefore seeks to explore the challenges encountered by selected private universities in Kenya, in implementing strategies that would lead to a financially sustainable university. These challenges were classified into two categories: the internal and external challenges. The internal challenges, experienced from within the university included: inadequate finances, university leadership and structures while the external ones include: government funding, government regulations and donor support. Qualitative grounded theory design was used in which an interview guide and a self-developed interview schedule were used in data collection. Twenty respondents were involved from four theological private universities. A fifth university was used for a pilot study. Data was organized manually and analyzed qualitatively through the use of codes and formation of categories. The strategies utilized were: students’ recruitment, internal and external funding, program development, review and diversification. The findings show that different universities are engaging in different strategies without much success in terms of income generated. This was attributed to the many internal and external challenges being faced by these universities. Therefore, this study proposed a financial sustainability system that is based on grounded theory which recommends the need to prioritize income generating strategies – developing, reviewing and diversifying revenue streams (input activities) that will generate adequate income to overcome the challenges in the system that are a major impediment to implementation of activities (output) that would lead to establishment of a financially sustainable university. This paper concludes by suggesting ways of developing, reviewing and diversifying revenue streams that will enhance the financial sustainability of the sampled universities. Moreover, it recommends that universities should develop more creative strategies that are not yet in place, review their status and also diversify their strategies to achieve financial sustainability.
The Influence of Source of Funding on the Financial Sustainability of Non-Governmental Organizations in Uasin Gishu County, Kenya (Published)
Financial sustainability is the ability of organizations to develop a diverse resource base. In Kenya, the number of NGOs has been increasing yearly; most of them depend on foreign donations. Therefore, the study sought to establish the relationship between donor funding and financial sustainability of non-governmental organizations in Uasin Gishu County, Kenya. Based on the study, this paper explores the influence of sources of funding on the financial sustainability of NGOs. Correlation research design was used as the principal research methodology for the study. The target population was 146 NGOs that were actively engaged in development projects in Uasin Gishu County. The respondents were NGO management and volunteers. Stratified sampling technique was used to identify non-governmental organizations to participate in the study. A sample size of 60 respondents was selected using Nassiuma’s 2000 model. Data collected was analysed using descriptive and inferential statistics. Test re-test was done to establish the reliability of instruments results; 95% level of significance was used to test the hypothesis. The findings of the study showed that there was a positive correlation between donor funding and financial sustainability of the NGO’s in Uasin Gishu County. Improved financial sustainability could be achieved as a result of diversifying sources of funds, retaining qualified staff and improving governance practices and organizational capacity. Therefore, it was recommended that NGOs should limit over-dependence on donor funds and indeed focus on establishing income generating activities and venture into multiple sources of funds for their projects; this would improve their financial sustainability.
Private and public higher education institutions have had the problem of financial un-sustainability in recent years. United Kingdom and European Union have instituted programs to work on financial sustainability of higher education. To achieve financial sustainability of higher education, institutions need to maintain or increase internally-generated funds that are regular, without future compromises. The paper establishes the legitimacy for future work needed for the variables to pursue sustainable growth. The study was designed to explore theories behind financial sustainability and established possible correlation between the sustainable growth rate and contributing factors that are sustaining the financing of higher education institutions. Quantitative research methodology was use for the research design with instrument on higher educational institutions across the globe. Results opened an important opportunity for discussion on financial sustainability in higher educational institutions. The outcome states that the predictive model is key to financial sustainability for higher educational institutions.
FINANCIAL SUSTAINABILITY PRACTICES AND OUTCOMES IN KENYA’S NON-GOVERNMENTAL ORGANIZATIONS: DEVELOPMENT ASSISTANCE DIPLOMATS AND ANGELS OF MERCY PARADOX (Published)
Non-Governmental Organizations (NGOs) play a major role in improving the living standards of families’ households, groups and individuals in any country especially in Kenya and yet its downplayed therefore, this paper posits that through financing There has been a significant increase in activities from Non-Governmental Organizations NGOs) with regards to funding of various projects as a practice (Adera, 2012). This paper seeks to posit financial sustainability practices and outcomes in Kenya’s Non-governmental organizations in a quest to deepening and creating an in-depth knowledge on some of these practices and their outcomes initiated or funded by non-governmental organizations to creating financial sustainability. The objectives of the article are three fold: to identify financial sustainability practices such as surplus, cash available to pay bills, credit facilities and community participation, to evaluate on the role of funding policies for financial sustainability of non-governmental organizations and finally to explore any inherent paradox on non-governmental financial sustainability principles and outcomes. The hypotheses were developed and tested using data collected using survey of the four regions selected in Kenya. Stratified random sampling technique was used to pick 110 managers in the region. Data was collected using self-administered structured questionnaires to the respondents. Pearson correlation and multiple regression models were used in the analysis to assess the financial sustainability. Financing policies was positively correlated to financial sustainability beta coefficient 0.296, ρ<0.05 does affect financial sustainability. level of access to donor funds was positively correlated to financial sustainability (Pearson correlation=0.468, p value=0.000) financing policies was 0.249 with p value 0.000<0.05 significance level, thus the study provide precursory evidence to reject null hypotheses that donor financing policies had no significance effect on financial sustainability of the project and infer that donor financing policies positively affect financial sustainability, thus enhancing financial policies will improve the financial sustainability of a project. The study is intended to strike a realistic approach of donor implementers and various governments on development assistance and allocative performance in creating financial sustainability and improving non-governmental organization performance which normally trickles down on citizen’s sustainability