Determination of the unit cost for Bachelor of Commerce Degree at the University of Nairobi

Abstract

This study analyses the various costs that are incurred at the Faculty of Commerce, University of Nairobi. It is aimed at determining the unit cost for bachelor of commerce degree. There were a couple of reasons behind the study. First, the University has for the last decade been operating at a deficit and thus there was need to review the costs and determine whether the unit costs are the causes of these deficits. Secondly, it appears that there is no clarity on the right amount that public universities, University of Nairobi in particular, should be charging the students as fees. Being an empirical study, the data was gathered from the college's books of account. The study revealed a significant difference between the Government's allocation and the real unit cost. Consequently, the unit cost goes along way in explaining these so acute deficits. Serious studies should be undertaken to determine all the possible alternatives that are available to help public universities in Kenya address this issue. In general, the survival of public universities will be realized through the concerted efforts of all the benefactors; the private sector, the institutions themselves, the students/parents and the Government.