Revenue Diversification and Financial Sustainability of Public Universities in Kenya

Abstract

This study examines the crucial role of revenue diversification in enhancing the financial sustainability of public universities in Kenya. By exploring various income-generating activities, including government funding, private-sponsored programs, and entrepreneurial ventures such as hospitality services, consultancy, and bookstores, the research highlights the potential of these strategies to improve financial resilience. The findings indicate that while revenue diversification significantly contributes to financial stability, its effectiveness is influenced by factors such as institutional capacity, unequal resource access, and challenges in managing internally generated funds. The study underscores the importance of tailored approaches that align with each institution's unique needs and market environment, emphasizing the necessity for robust institutional support, transparent fund management systems, and strategic implementation to fully capitalize on revenue diversification. Ultimately, this research provides valuable insights into the potential of diversified income streams in strengthening the financial sustainability of Kenyan public universities, offering a pathway to greater resilience in an era of diminishing government support.