Income generation at public universities: A case of the University of Nairobi Enterprises and Services Limited

Abstract

Over the years, public universities in the region have had to innovate in order to cope with increased competition and diminishing capitation particularly from the Treasury. The University of Nairobi is no exception. In 1995 under the strain of outstanding debts to suppliers, utilities, Kenya Revenue Authority and pension schemes, it decided to set up the University of Nairobi Enterprises and Services Ltd. (UNES), a limited company wholly owned by the University. Amongst other objectives UNES was to facilitate the running of the parallel programmes for full fee paying students at both undergraduate and postgraduate levels. It also facilitated revenue collection for various income generation activities (IGA) from various non-academic income generating units such as mortuary services. The income generated was classified by the nature of the activities: teaching, consultancy, short courses and special production units with clearly defined schedules for disbursement of the said generated income. It was in this way that the University of Nairobi, was slowly able to get itself off the ground towards partial solvency. During those years, one of the key functions of the University namely research was seriously handicapped. Money for research from internal sources was virtually nil. Nowadays through the income generating activities, departments have been able to refurbish and equip their laboratories, purchase computers and connect to the Internet and pay for consumables. This paper outlines the development of the third strategic plan for UNES 2005-2010 and in particular the data collected during the exercise, through guided interviews, structured questions for various cohorts i.e. senior academic and administration UoN staff and UNES staff. The data was analyzed using SPSS, and the quality of service attitude indexes for various criteria determined. The diversification of income generation activities, improvement of internal processes, better customer/client services and managing the tenuous relationship between the University and UNES , a company wholly owned by the University, through a judicious balance between autonomy and co-operation is advised for the sustainable development of both parties.