Determinants of Technical Efficiency of Technical Training Institutions in Kenya

Abstract

In light of the concerted efforts by government to revamp the Kenyan system of TVET education, the study evaluates technical efficiency of public TVET institutions using Data Envelopment Analysis. Specifically, the study analyses the efficiency of 34 TVET institutions based on available input data on expenditure, teaching staff and enrollment and output data on number of graduates and mean pass rates. The efficiency scores are then regressed against selected variables to determine their effect on efficiency. Secondly, the study also examines total factor productivity change in these institutions using the Malmquist Index using data for 5 years from 2008 to 2012. The results from the data envelopment analysis suggest that a large number of the TVET institutions are not efficient because they have efficiency scores of less than 1. Moreover, findings from the efficiency scores suggest the TVET colleges could improve performance by 32% using the same resources. In addition, mean annual total factor productivity growth was positive and increased by 42.2 per cent and was entirely due to technical change accounting for 38.2 per cent. The study recommends that policies to ensure effective management and operations of TVET institutions should be implemented. This may include greater decentralization of the management structures of public TVET institutions to give college managers more discretion in allocation of resources. Secondly, we recommend that the assessment system in TVET institutions should be restructured to ensure improvement in the low pass rates by implementing a competency based assessment framework which is more valid to skills development. Lastly, the study recommends enhanced and equitable funding of rural based institutions to ensure that they operate optimally and are at par with urban based TVETs.